Heating oil prices have more than doubled in a year, and the government says it will tighten the rules after households were forced to buy fuel at sharply higher levels or go without. Polly Billington said energy is an essential good, but the minister gave no timetable for when the new protections will land.
1,700 households were identified by the Competition and Markets Authority as being forced to re-order at significantly higher prices after the war broke out, with costs reaching up to £350. For off-grid customers, that is not an abstract market shift: it is the difference between topping up early, paying more, or waiting without fuel.
Polly Billington and the sector
£53m was announced in March for low-income families who use heating oil, with local authorities setting their own eligibility rules. The new move goes further by accepting the Competition and Markets Authority's recommendation to strengthen regulation in the sector, promote competition and give customers clearer compensation routes if things go wrong.
500 litres is the minimum order level some consumers face, even though domestic tanks typically hold between 1,000 and 2,000 litres. The government said it will review those industry practices, a change that could force suppliers to justify why households are being asked to pay for more fuel than they may need at once.
Nick in West Suffolk
111p per litre was the quote Nick received in West Suffolk, after prices had more than doubled in a year. He rents a three-bedroom home with his partner, and said off-grid households remain a major policy blind spot.
"Thousands of heating oil customers felt they had nowhere to turn when they paid the price of rising oil and gas costs earlier this year." Billington said. "We won't accept that. Energy is an essential good and people should not have to think twice about whether they're protected in the market. That's why we will reform the sector."
Campaigners want heating oil customers in England, Scotland and Wales to have the same cap as regular variable gas and electricity tariffs, but there is no sign of the government proposing one for this market. Until stricter rules arrive, customers are left with the same basic choice: accept the supplier's order size, or risk paying more later when they need a refill.
