The UK government has pledged to reform the heating oil sector, promising stricter regulations and better consumer protections as prices soar. Despite the promise, heating oil customers continue to face high bills, with some reporting prices more than doubling in a year. The government has announced it will accept the Competition and Markets Authority's recommendation to strengthen regulation in the sector, following an inquiry that found 1,700 households were forced to re-order at significantly higher prices or go without fuel after the US-Israeli war with Iran. The government has also announced a £53m support package for low-income families who use heating oil, though local authorities set their own criteria for eligibility. Energy minister Polly Billington said thousands of heating oil customers felt they had nowhere to turn when they paid the price of rising oil and gas costs earlier this year. She emphasized that energy is an essential good and people should not have to think twice about whether they're protected in the market. However, heating oil users do not have the same consumer protections as electricity and gas customers, and most heating oil customers are in Northern Ireland, where regulation is separate.
The government has also introduced a code of practice and is reviewing minimum order levels for some consumers. Domestic tanks typically hold between 1,000 and 2,000 litres. Some campaigners have called for heating oil customers to benefit from the same cap as regular, variable gas and electricity tariffs in England, Scotland and Wales. However, there is no sign of the government proposing such a change, nor when the stricter rules will take effect. Nick, a heating oil customer from West Suffolk, told the BBC's Your Voice that off-grid households remain a major policy blind spot for the government. He called on tax cuts for customers, or the extension of the price cap to heating oil - a demand also made by charity National Energy Action.
Tim Buckman, chief executive of price comparison site Boiler Juice, told the BBC he wants stronger protections for consumers but the main problem was that heating oil is twice as expensive as it was before the war. Just putting regulation in place is not going to reduce the price for customers. What we would like to see is the VAT off heating oil or targeting that specifically.