Are Government plans for heating oil market regulation enough to protect consumers?

The Government’s pledge to protect customers who are reliant on heating oil is to be welcomed. Following the outbreak of war in the Middle East, consumers were treated unfairly by suppliers in what has been a largely unregulated sector.

Not only did prices spike but there were numerous instances of orders cancelled and customers being made to re-order oil at a much higher price.

The Competition and Markets Authority's (CMA) later found that 1,700 households were owed compensation as a result of this.

The Government stepped in with £53m in immediate support to help vulnerable heating oil customers through the crisis but there is clearly a need for reform of the market.

Industry practices currently include setting minimum order volumes at 500 litres for some consumers, requiring them to pay for more heating oil than they may need.

Polly Billington, Minister for Energy Consumers, said: “Energy is an essential good and people should not have to think twice about whether they're protected in the market.”

A lot of households are still reliant on heating oil because they have no other viable choice. Especially in rural parts of Yorkshire, the infrastructure is lacking. Therefore, it is only fair that these households are offered protection on a par with those that rely on gas and electricity.

The regulation will aim to formalise the standards consumers can expect from their suppliers, protect vulnerable households from harm, and give people clearer routes to compensation when things go wrong. While it is good to see the Government looking at protecting heating oil customers, some campaigners have called for heating oil customers to benefit from the same cap as regular, variable gas and electricity tariffs.