Ben Lake, the Member of Parliament for Ceredigion and Preseli, has welcomed recommendations from the Competition and Markets Authority (CMA) aimed at strengthening protections for households that rely on heating oil rather than gas or electricity networks. The CMA’s market study, prompted by disruption to supplies following conflict in the Middle East, concluded that consumers in the sector are not as well protected as those on the grid.
What the CMA found
The regulator reported that the home heating oil market is generally competitive and that suppliers did not appear to have made material profits from recent supply shocks. However, it also identified significant consumer protection gaps for households that are off‑grid:
- Inconsistent standards of support for vulnerable customers compared with gas and electricity customers.
- Limited access to alternative dispute resolution when customers cannot resolve issues directly with suppliers.
- Higher costs and fewer suppliers in rural and off‑grid areas, reflecting the expense of serving dispersed communities.
Recommendations and next steps
Among the CMA’s recommendations are a review of rules on minimum order volumes, to allow households to purchase smaller quantities of heating oil, and the introduction of minimum standards for suppliers. The regulator has also committed to working with governments, other regulators and industry to take forward its proposals and to continue discussions about a compensation scheme for households affected by cancelled orders earlier this year.
“I welcome the Competition and Markets Authority’s decision to call for a new regulatory regime for heating oil suppliers, and its announcement of a compensation scheme for those households who were impacted by last minute cancelled orders earlier this year.”
That comment, made by Ben Lake following publication of the CMA’s report, underlines the priority given to immediate practical protections for customers hit by recent market turbulence.
Local impact in Ceredigion
Ceredigion contains many rural communities where heating oil remains essential. Households off the mains gas network typically purchase fuel in bulk, often facing bills of around £500 or more at a time. The CMA highlighted how large minimum order requirements and limited local supplier choice can leave residents exposed to higher prices and less consumer support than city and grid‑connected customers.
| Issue identified | CMA response |
|---|---|
| High minimum order volumes | Recommend review to allow smaller purchases |
| Uneven protections for vulnerable customers | Propose minimum supplier standards and vulnerable household registration |
| Cancelled orders and supply disruption | Discussing a compensation scheme with industry |
Local councillors and community groups in Ceredigion will be watching how the CMA’s recommendations are taken forward, since many households in coastal and upland parishes rely on delivered fuel, and often have fewer supplier options than urban areas.
Practical information for residents
- If you are reliant on heating oil and experienced a cancelled order, keep records of orders and any correspondence with suppliers — these will be important if a compensation scheme is implemented.
- Ask suppliers about minimum order volumes and whether smaller deliveries can be arranged or if payment plans are available.
- Speak to local councillors or advice services if you consider yourself vulnerable or need help resolving a dispute with a supplier.
The CMA has said it will continue discussions with governments, regulators and industry to take forward the recommendations. Any formal regulatory changes or compensation arrangements will require co‑ordination with UK and devolved authorities, and with the heating oil sector itself.
