Polly Billington said the UK government heating oil policy will be changed after ministers said they will accept a Competition and Markets Authority recommendation to strengthen regulation in the heating oil sector. The plan includes tighter rules, clearer compensation routes and a review of minimum order levels for some customers.
Billington, the energy minister, said: "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." She added: "We won't accept that. Energy is an essential good and people should not have to think twice about whether they are protected in the market. That's why we will reform the sector."
Competition and Markets Authority
The Competition and Markets Authority found that 1,700 households were forced to re-order at significantly higher prices or go without fuel after the war broke out. It said those households could be out of pocket by up to £350, and customers whose orders were cancelled and prices raised were told they were entitled to compensation.
The government said it will work with industry to develop a regulatory regime for the heating oil market that protects consumers and promotes competition. It also said some customers have had to pay for more heating oil than they might need because of minimum order volumes, including industry practices that set a 500-litre floor for some consumers.
Nick in West Suffolk
Nick, a heating oil customer from West Suffolk, said off-grid households remain "a major policy blind spot". He told the 's Your Voice that any protection from the UK government for domestic heating oil users would be welcome, "providing this is for all domestic heating oil users".
Heating oil prices have close to doubled in the past year, and domestic tanks typically hold between 1,000 and 2,000 litres. Campaigners want heating oil customers to get the same cap as regular variable gas and electricity tariffs in England, Scotland and Wales, but there is no sign the government is proposing that change.
March support package
The latest change follows a £53m support package for low-income families who use heating oil that the government announced in March. The government has not said when the stricter rules will take effect, leaving customers to watch whether the promised reform changes minimum order rules and compensation routes before another price shock arrives.
