Heating-oil charges rise prompts CMA action

What's happened

The CMA has found that heating-oil price spikes during the Iran conflict largely reflect wholesale costs, but consumer protections are weaker than for gas and electricity. It will push for a new regulatory regime, with supplier registration, clear pricing notes, and support for vulnerable households. About 1,700 customers were affected by cancelled orders, with some paying up to £350 more for replacements.

What's behind the headline?

Key takeaways

• The CMA’s stance is that competition exists but protections are lacking, prompting calls for regulation rather than price controls.
• The watchdog highlights vulnerable customers and regional reliance on heating oil as drivers for policy change.
• Expect a push for a supplier register, minimum standards on pricing and contract handling, and access to dispute resolution.

What this means for households

• Rural and off-grid households could see enhanced protections through clearer pricing and faster redress when orders are cancelled.
• The regulatory framework could influence how quickly and fairly suppliers respond to complaints.

Forecast

• Policy changes will depend on government reception; enforcement could follow if holdout suppliers do not compensate.

How we got here

The CMA launched a four-month investigation into the heating-oil market after a surge in prices tied to the Middle East crisis. Many households rely on heating oil, particularly in rural areas and Northern Ireland, where supply chains are dispersed and delivery costs high. The regulator found that while price rises tracked wholesale costs, protections for oil customers lag behind those for grid-connected energy users.

Our analysis

BBC Business, The Guardian, BBC News | Quotes: CMA Chief Executive Sarah Cardell on stronger safeguards and regulatory oversight; Chancellor Rachel Reeves on protecting households.

Go deeper

• Will the new regime include penalties for non-compliance?
• How quickly will compensation reach affected customers?
• What other sectors could be touched by similar protections?

More on these topics

• United Kingdom - Country in Europe

  The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the north­western coast of the European mainland.

• Iran (Islamic Republic of Iran) - Country in the Middle East

  Iran, also called Persia, and officially the Islamic Republic of Iran, is a country in Western Asia. It is bordered to the northwest by Armenia and Azerbaijan, to the north by the Caspian Sea, to the northeast by Turkmenistan, to the east by Afghanistan a

• Rachel Reeves - Member of Parliament of the United Kingdom

  Rachel Jane Reeves is a British Labour Party politician serving as Shadow Chancellor of the Duchy of Lancaster and Shadow Minister for the Cabinet Office since 2020. She has been the Member of Parliament for Leeds West since 2010.

• Competition and Markets Authority - Government department

  The Competition and Markets Authority is a non-ministerial government department in the United Kingdom, responsible for strengthening business competition and preventing and reducing anti-competitive activities.

• Northern Ireland - Country of the United Kingdom

  Northern Ireland is variously described as a country, province or region which is part of the United Kingdom. Located in the northeast of the island of Ireland, Northern Ireland shares a border to the south and west with the Republic of Ireland.