The government has committed to strengthening regulation of the heating oil sector following complaints from customers facing sharply rising bills. Ministers said they would work with industry to create a new regulatory framework, promote competition and establish clearer compensation processes for consumers. The review will include minimum order levels, currently set at 500 litres for some customers, despite domestic tanks typically holding between 1,000 and 2,000 litres. Energy minister Polly Billington said the government would not accept the situation where heating oil customers "felt they had nowhere to turn when they paid the price of rising oil and gas costs."
About 1.5 million UK households depend on heating oil but lack the consumer protections available to electricity and gas customers. A Competition and Markets Authority inquiry found that 1,700 households were forced to re-order at significantly higher prices after recent geopolitical events, costing some up to £350. Some campaigners have demanded that heating oil customers receive the same price cap as standard variable tariffs, though the government has not proposed this. The regulator Ofgem currently only covers England, Wales and Scotland, while most heating oil users are in Northern Ireland, where 60% of households rely on it.
Existing support measures include a £53 million package announced in March for low-income heating oil users, distributed by local authorities, and discounts on heat pumps. A code of practice is already in place. However, the government has not specified when stricter rules will take effect.