The Competition & Markets Authority Call for Stronger Protections for Heating Oil Customers

Chris has welcomed new recommendations from the Competition and Markets Authority (CMA) calling for stronger protections for households that rely on heating oil, following an investigation prompted by last year’s sharp price rises and supply disruption.

The CMA’s final report found that while the heating oil market is generally competitive, consumers are not afforded the same protections as households connected to the gas grid. During periods of market volatility, customers can face uncertainty over prices, deliveries and their rights when orders are cancelled.

The regulator is recommending that governments introduce a new regulatory framework for heating oil suppliers, including minimum service standards, clearer rules on pricing and cancellations, access to independent dispute resolution, and a register to help identify and protect vulnerable households.

The report also highlights particular challenges facing Scottish consumers. Heating oil prices in Scotland are typically higher than the UK average, customers often have fewer suppliers to choose from, and there is less price transparency than elsewhere in the UK. The CMA has suggested that the Scottish Government consider introducing a dedicated price‑checking tool to help consumers compare costs and make informed decisions.

Alongside the wider market study, the CMA investigated reports that some suppliers had cancelled customer orders during last year’s disruption. The regulator estimates that around 1,700 customers may have been affected, with some forced to pay significantly higher prices for replacement orders. Several suppliers have now agreed to compensate affected customers following CMA intervention, while the regulator continues to pursue action against others.

Chris said:

“Many households across Stirling and Strathallan contacted me during last year’s heating oil crisis after experiencing soaring prices, delayed deliveries and cancelled orders. I raised these concerns directly with Government ministers and pressed for action to ensure consumers were treated fairly.

“I welcome the CMA’s findings and its recognition that heating oil users need stronger protections. No household should be left wondering whether their fuel delivery will arrive or be forced to pay significantly more because an existing order has been cancelled.

“The recommendations set out by the CMA are sensible and proportionate. Improved transparency, better protections for vulnerable customers and access to independent dispute resolution would provide much‑needed confidence for families who rely on heating oil to heat their homes.”

He added:

“The report also recognises the particular challenges faced by rural communities in Scotland, where households often have fewer suppliers and less ability to compare prices.

“Importantly, the CMA has also highlighted the need for governments to consider additional support for vulnerable heating oil customers and for households living in areas exposed to persistently higher prices. That is especially relevant for many rural communities across Scotland.

“The UK and Scottish Governments should now work together to examine these recommendations and ensure that households who rely on heating oil are not left behind. Whether through better consumer protections, targeted support or assistance with the transition to alternative heating systems, we must make sure rural families receive the help they need.

“I will continue engaging with ministers and stakeholders to ensure the voices of heating oil users in Stirling and Strathallan are heard.”

The CMA’s recommendations will now be considered by governments across the UK.

Click here to read the full market study.