CMA Orders Redress for 1,700 Heating Oil Households Hit by 92% Price Spike

Q: How did a distant Middle East war leave thousands of British families facing a winter without heating?

A war in the Middle East hit British households through the global oil market, then exposed a weakly regulated corner of the UK energy system. The conflict involving the US, Israel and Iran disrupted oil production and transport in the region, with the Strait of Hormuz a key pressure point. Wholesale oil prices rose from about $70 a barrel to nearly $120 between February and March. In the UK, that fed quickly into heating-oil costs: average retail prices peaked 92% higher, rising from about 64p a litre to 123p. That mattered because around 1.5 million to 1.7 million UK homes, mostly off the gas grid and concentrated in rural areas, rely on heating oil. In Northern Ireland, roughly 60% of households use it. Unlike gas and electricity customers, they are not protected by an Ofgem price cap or the same consumer safeguards. The CMA found that about 1,700 customers had existing orders cancelled as prices surged. Many then had to reorder at much higher rates, sometimes paying up to £350 more, while others risked running out of fuel altogether. Some reported extreme jumps, such as a 500-litre order rising from around £300 to more than £800. The watchdog said suppliers did not materially profit overall from the crisis, but the market rules left consumers exposed. That is why the CMA is now pushing compensation, legal action against firms that refuse to pay, and new rules on price quotes, cancellations, dispute resolution and support for vulnerable households.

2 articles · Updated · bbc.co.uk · Jul 14

About 1,700 UK households whose heating-oil orders were cancelled after the Iran war broke out will receive compensation or have original orders honored at the agreed price, the CMA said.
Retail heating-oil prices peaked 92% above prewar levels after wholesale oil climbed from about $70 a barrel in February to nearly $120 by late March, though the watchdog said suppliers did not materially profit overall.
The CMA said customers who paid more for replacement oil will be reimbursed for the difference, and it is preparing court-based enforcement against suppliers that refuse to compensate voluntarily.
A four-month investigation found heating-oil users lack protections available to gas and electricity customers, prompting recommendations on price quotes, cancellations and support for vulnerable consumers.
The findings matter for roughly 1.5 million households that rely on heating oil, including about 60% of homes in Northern Ireland.