Stuart Anderson MP has welcomed new action from the Competition and Markets Authority (CMA) to protect households reliant on heating oil. This includes the 24,117 households in South Shropshire who are not connected to the mains gas network. The CMA is enforcing compensation for cancelled orders and calls for new regulations to protect rural customers.
Stuart Anderson MP said:
“I know how worrying it is for families in South Shropshire when heating oil prices spiked earlier this year. With many homes here off the gas grid, and no protection from the Energy Price Cap, people were left incredibly exposed to increased costs. In March, I urged the CMA to act because what was happening looked like profiteering and families deserve better. It is right that the CMA is forcing suppliers to compensate the 1,700 households affected by cancelled orders. I also back their call for proper regulation of the heating oil market. We need minimum standards, better support for vulnerable customers, and more flexibility on order sizes so people aren’t forced to buy more than they can afford in one go.”
Around 1.5 million households in the UK rely on bulk deliveries of heating oil. In South Shropshire, 24,117 or 53% of all properties. As these homes are off the gas grid, they are not protected by the Energy Price Cap which sets the maximum amount energy suppliers can charge for each unit of energy used. Residents in remote areas like Clun, Craven Arms, and Bishop’s Castle often have less choice of supplier and face higher prices due to the costs of delivery, meaning they are far more exposed to sudden fluctuations in the cost of oil.
In March, Stuart urged the CMA investigate what he called “blatant and opportunistic profiteering” after families reported cancelled delivery bookings only to be offered the same oil delivery on the same day at twice the original price. Following their investigation, the CMA has found “clear gaps” in protections for heating oil customers compared to those on the gas and electricity networks. The CMA identified around 1,700 households had orders cancelled in breach of contract when heating oil prices jumped by 92% to 123p per litre in March. As a result, some families may have paid between £150 and £350 more to replace their order. Following CMA engagement, a number of suppliers have now agreed to compensate affected customers. Those who had to buy replacement oil at a higher price will receive a payment covering the difference, while those who did not buy replacement oil will have their original order honoured at the agreed price.
The CMA has also said that the practice of cancelling orders to re-sell at higher prices is “simply unacceptable”. It is continuing to engage with suppliers who have not yet agreed to compensate customers and is preparing to take *court-based enforcement action* if they do not. To better protect people, especially during periods of price volatility, the CMA has also recommended that the UK Government introduce a new regulatory regime for heating oil suppliers. The CMA is calling for suppliers to be required to register and meet minimum standards. This would cover how prices are quoted, how cancellations are managed, and ensure households have access to Independent Dispute Resolution if problems cannot be resolved directly with a supplier. The CMA also wants suppliers to be required to clearly signpost available payment plans and minimum purchase volumes. This would make it easier for households to understand their options upfront and budget for deliveries. Finally, the CMA is calling for rules around minimum order volumes to be reviewed. This would allow people to buy smaller amounts of heating oil, so they are not forced to pay for large deliveries they cannot afford in one go.
Vulnerable households facing immediate financial difficulties are encouraged to contact their local authority to find out about support through the Crisis and Resilience Fund (CRF). Shropshire Council, which covers five constituencies with 53,080 off-grid households, has been allocated £758,558. However Stuart said this equates to just £14.29 per household compared to a national average of £35. The national average allocation is only a tenth of the £350 additional cost faced by those who need to fill a typical 500-litre tank after prices doubled. Government guidance directs councils to target the funding to “households in crisis”, meaning thousands of affected households will still be left without support. Residents can visit Shropshire Council’s website at https://next.shropshire.gov.uk/cost-of-living-help/crisis-and-resilienc….
