UK Government to regulate heating oil market for first time

The UK Government has announced plans to regulate the heating oil market for the first time, following recommendations from the Competition and Markets Authority (CMA). The move aims to formalize consumer standards, protect vulnerable households, and establish clearer routes for compensation.

The decision follows a significant price spike earlier this year, where prices in some areas rose sharply due to wholesale costs and geopolitical tensions. The CMA previously found that some suppliers had cancelled existing orders to resell oil at higher prices, affecting approximately 1,700 customers. Those affected by such practices are being issued refunds.

New measures will include strengthening the industry code of conduct and reviewing current practices, such as the 500-litre minimum order volume. While the announcement has been welcomed by officials as a significant step for communities off the gas grid, lawmakers have called for clarity on when these protections will be fully implemented.