Heating oil customers who had their orders cancelled and prices raised when the US-Israel war with Iran broke out will get compensation, the competition watchdog has said.<\/p>\n
Some 1,700 households were forced to “re-order at significantly higher prices or go without fuel” costing them up to \u00a3350, the Competition Markets Authority (CMA) said.<\/p>\n
Some suppliers have agreed to compensate customers and the regulator is planning legal action against those who have so far refused to do so, it added.<\/p>\n
The UK and Ireland Fuel Distribution Association (UKIFDA), which represents heating oil suppliers, said “there were a small number of cases found which require redress”.<\/p>\n
Wholesale oil prices jumped from around $70 a barrel at the start of Iran war in February to almost $120 a barrel by the end of March as the conflict disrupted the transportation and production of energy in the region.<\/p>\n
UK heating oil prices also jumped around this time. The CMA said on Wednesday that “average retail prices were, at their peak, 92% higher”.<\/p>\n
The CMA’s investigation into the heating oil market found the price increases after the Iran war largely reflected rising wholesale costs and suppliers have not profited materially from the crisis.<\/p>\n
However, it concluded heating oil customers are not as well protected as those connected to the energy grid.<\/p>\n
It has recommended new regulations over how prices are quoted and cancellations are handled as well as “better support for vulnerable consumers”.<\/p>\n
Chancellor Rachel Reeves said: “It is reassuring to know it is a competitive market but the lack of protection for these households does concern me so we will look very seriously at what can be done.”<\/p>\n
UKIFDA chief executive Ken Cronin said: “We will work with all government bodies on the recommendations set out in this report.”<\/p>\n
Meanwhile, the CMA has not said how many suppliers have agreed to compensate customers for cancelled orders, how many customers will receive a pay out, or how much they will get.<\/p>\n
“Those who paid more to replace their cancelled order 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,” it said.<\/p>\n
“[We are] preparing to take court-based enforcement action against firms that fail to compensate customers voluntarily,” it added.<\/p>\n
The BBC understands more details will be provided once the scheme is up and running.<\/p>\n
The CMA’s report on the heating oil sector follows a four-month investigation launched in March.<\/p>\n
Those who use heating oil often store it in a tank outside their property and are among the first to feel the impact of rising prices.<\/p>\n
Some 1.5 million households depend on heating oil, but do not have the same consumer protections as electricity and gas customers, according to the CMA. <\/p>\n
Most of those are in Northern Ireland, where the watchdog says 60% of households rely on it.<\/p>\n","protected":false},"excerpt":{"rendered":"Heating oil customers who had their orders cancelled and prices raised when the US-Israel war with Iran broke…\n","protected":false},"author":2,"featured_media":692201,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,59,56,54,55],"class_list":["post-692200","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-gb","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/692200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=692200"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/692200\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/692201"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=692200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=692200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=692200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}