North Devon’s MP welcomes CMA call for protection of Heating Oil Customers

North Devon’s Liberal Democrat MP, Ian Roome, has welcomed the report today by the Competition and Markets Authority (CMA) into the heating oil market, which calls for tougher regulation of the sector to protect consumers from unfair practices. 

The CMA investigation was commissioned following extreme price rises in heating oil following the Middle East conflict earlier this year, with reports of some heating oil companies cancelling orders in order to set higher prices. Average retail prices were, at their peak, 92% higher than before the conflict. 

North Devon, according to research from the House of Commons Library, has over 14,000 off-grid fuel households, nearly 30% of all local households. 

In a survey launched by local Liberal Democrat MP Ian Roome to assess the impact on North Devon residents, Mr Roome reported that over 30% of respondents who tried to order fuel were quoted prices 100-150% higher than usual, with some even reporting increases of over 200%. The North Devon MP’s survey also showed that many customers were attempting to place a new order, but lots were unsuccessful. 

The CMA found that although the home heating oil market is generally competitive and suppliers have not profited materially from the crisis, consumers are not as well protected as those connected to the grid.

The CMA recommended for the UK government to introduce a new regulatory regime for heating oil suppliers, which would require suppliers to register and meet minimum standards and to clearly signpost available payment plans and minimum purchase volumes, and would create a register for vulnerable households. The CMA is also recommending a review of rules and regulations around minimum order volumes to allow people to buy smaller amounts of heating oil.

Liberal Democrat MP for North Devon, Ian Roome, said:

 “The conflict in the Middle East has shown how horribly exposed many North Devon off-grid fuel customers are to sudden price spikes. I’ve heard from many constituents who couldn’t afford to fill their tanks or even had orders cancelled. It’s about time we had proper regulation of the heating oil market, and today’s CMA’s report makes that clear.

"I wrote to the Energy Minister sharing the results of my heating oil survey and pushing for stronger protections for rural areas like ours. And it’s not just households under pressure - farmers and rural businesses are also being hit by rising energy, red diesel and fertiliser costs. 

“The government now needs to act before the next economic shock hits home.”

Further information found at:UK’s heating oil households need stronger protections, says CMA - GOV.UKhttps://www.gov.uk/government/news/uks-heating-oil-households-need-stronger-protections-says-cma