Heating oil customers to receive up to £350 compensation after CMA probe
9 reported
Heating oil customers whose deliveries were cancelled during a price surge caused by the war in the Middle East are to receive compensation of up to £350 each, following an investigation by the UK Competition and Markets Authority (CMA). The CMA said it investigated heating oil suppliers after complaints that existing orders were scrapped, with customers offered new deliveries at a significantly higher price. A report published Wednesday states about 1,700 customers were affected by these possible breaches of contract. While they had received refunds for their original order, many had to pay a lot more or go without fuel. After being contacted by the watchdog, a number of suppliers agreed to compensate those affected. The CMA’s chief executive, Sarah Cardell, said 1,700 customers had been “left in limbo” and that the regulator is prepared to take court-based enforcement action against companies that fail to compensate customers voluntarily. The CMA also recommended to UK and devolved governments that a new regulatory regime for heating oil suppliers be introduced, including a register of suppliers and minimum standards for order cancellations.
What’s reported
Compensation of up to £350 per customer is to be paid to heating oil customers whose orders were cancelled during a price surge caused by the war in the Middle East.
The CMA investigated heating oil suppliers after complaints that existing orders were scrapped and customers offered new deliveries at a significantly higher price.
About 1,700 customers were affected by these possible breaches of contract.
At its peak in April, heating oil jumped 92% to 123p a litre.
Some people may have paid between £150 and £350 more for their heating oil.
A number of suppliers agreed to compensate those affected; those who paid more will receive a payment covering the difference, while those who did not buy replacement oil will have their original orders honoured at the agreed price.
The CMA’s chief executive, Sarah Cardell, said the regulator is prepared to take court-based enforcement action against companies that fail to compensate customers voluntarily.
The CMA recommended to UK and devolved governments that a new regulatory regime for heating oil suppliers be introduced, including a register of suppliers and minimum standards for order cancellations.
About 1.5m households in the UK, mostly in rural areas not connected to the mains gas network, rely on heating oil.
Key figures
Sarah Cardell, chief executive of the Competition and Markets Authority (CMA)
Rachel Reeves, chancellor
Sources: The Guardian
