Heating oil customers to receive up to £350 compensation after cancelled orders

Around 1,700 households whose heating oil orders were cancelled during the conflict involving the US, Israel and Iran are set to receive compensation.

It comes after an investigation by the Competition and Markets Authority (CMA).

The regulator said affected customers were forced to either place replacement orders at significantly higher prices or risk running out of heating oil altogether.

According to the CMA, some households paid up to £350 more than they had originally expected after their orders were cancelled.

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The watchdog said several heating oil suppliers have agreed to compensate customers voluntarily, while it is preparing court action against businesses that have refused to do so.

Customers who were forced to buy replacement heating oil at higher prices will receive payments covering the difference in cost, the CMA confirmed.

The investigation examined the impact of the conflict on the heating oil market after wholesale oil prices rose sharply.

According to the regulator, wholesale oil prices increased from around $70 per barrel when the conflict began in February to almost $120 per barrel by the end of March as transport and production were disrupted.

However, following its four-month investigation, the regulator concluded the price increases broadly reflected higher wholesale costs rather than suppliers taking advantage of the situation.

The CMA said it found no evidence that suppliers had made excessive profits during the period.

Around 1.5 million households across the UK rely on heating oil, which is typically stored in tanks at their properties.

Northern Ireland is particularly dependent on the fuel, with around 60 per cent of homes using heating oil.

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Alongside its findings, the CMA called for stronger regulation of the heating oil market, including new rules governing pricing and order cancellations.

The regulator also recommended greater protections for vulnerable customers, noting that heating oil users do not benefit from the same safeguards as households connected to the gas grid.

Chancellor Rachel Reeves welcomed the findings but said further work was needed.

She 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."

Ken Cronin, chief executive of the UK and Ireland Fuel Distribution Association, said: "We will work with all Government bodies on the recommendations set out in this report."

The trade body also acknowledged that "there were a small number of cases found which require redress."

Anthony Maines, 31, from Seaton Delaval in Northumberland, was among the customers affected by cancelled orders.

Mr Maines paid £463.83 for 700 litres of heating oil on February 28 after placing an order through a broker as tensions in the Middle East escalated.

His order was cancelled several days later, forcing him to buy 500 litres from another supplier for around £700.

Mr Maines said: "It felt like I was being punished for doing the sensible thing."

Although his original broker agreed in May to honour the original price, he had already purchased heating oil elsewhere at the higher cost.

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