{"id":122974,"date":"2026-07-15T10:45:00","date_gmt":"2026-07-15T09:45:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=122974"},"modified":"2026-07-15T10:39:54","modified_gmt":"2026-07-15T09:39:54","slug":"cma-announces-compensation-plan","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/cma-announces-compensation-plan\/","title":{"rendered":"CMA Announces Compensation Plan for Heating Oil Households Caught by Price Spike"},"content":{"rendered":"\n<p>Around 1,700 heating oil customers across the UK are set to receive compensation after suppliers cancelled orders during the sharp price increases triggered by the conflict in the Middle East. According to the Competition and Markets Authority (<strong>CMA<\/strong>), some households were forced to pay significantly more for replacement deliveries or went without fuel altogether.<\/p>\n\n\n\n<p>The watchdog has also recommended stronger consumer protections for the 1.5 million UK households that rely on<strong> heating oil<\/strong>, arguing that current safeguards fall short of those available to gas and electricity customers.<\/p>\n\n\n\n<p>The CMA launched its market study after heating oil prices rose sharply during the disruption caused by the conflict. While the regulator concluded that the market remained broadly competitive and suppliers did not materially profit from the price surge, it found that some customers were left exposed when existing orders were cancelled.<\/p>\n\n\n\n<p>According to the CMA, average retail heating oil prices reached a peak that was <strong>92% higher<\/strong> than before the disruption, highlighting the impact that wholesale market movements can have on households that are not connected to the mains gas network.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Compensation Scheme Targets Customers Affected by Cancelled Deliveries<\/strong><\/h2>\n\n\n\n<p>The CMA estimates that around 1,700 customers were affected by possible breaches of contract after suppliers cancelled confirmed heating oil orders. Although <strong>refunds <\/strong>were issued for the original purchases, many customers had to place new orders at substantially higher prices or were left without fuel.<\/p>\n\n\n\n<p>According to the regulator, some households paid between <strong>\u00a3150 and \u00a3350 more <\/strong>for replacement heating oil. Following discussions with the CMA, several suppliers have agreed to compensate affected customers. Those who paid more for replacement deliveries will receive payments covering the additional cost, while customers who did not reorder will have their original purchases honoured at the agreed price.<\/p>\n\n\n\n<p>The regulator said not all suppliers have agreed to participate voluntarily. CMA chief executive <a href=\"https:\/\/www.gov.uk\/government\/people\/sarah-cardell\" target=\"_blank\" rel=\"noopener\">Sarah Cardell<\/a> said around 1,700 customers had been &#8220;left in limbo&#8221; after their orders were cancelled, adding that the authority is continuing discussions with remaining firms and is preparing court-based enforcement action if compensation is not provided.<\/p>\n\n\n\n<p>The CMA has not yet confirmed how many suppliers have agreed to the scheme or how many customers will ultimately receive compensation. The BBC reported that further details are expected once the compensation process is fully established.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-x wp-block-embed-x\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">In recent months the situation facing households reliant on heating oil has often been completely unacceptable. <br><br>Today, the CMA has made recommendations for regulation and announced they are preparing to take enforcement action.<a href=\"https:\/\/t.co\/X5FoJglRfg\">https:\/\/t.co\/X5FoJglRfg<\/a><\/p>&mdash; Martin McCluskey MP (@martinmccluskey) <a href=\"https:\/\/x.com\/martinmccluskey\/status\/2077290031794868702?ref_src=twsrc%5Etfw\">July 15, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.x.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Watchdog Calls for Stronger Protections across the Heating Oil Market<\/strong><\/h2>\n\n\n\n<p>Alongside the <a href=\"https:\/\/en.econostrum.info\/uk\/9bn-compensation-scheme-major-car-finance\/\" data-type=\"post\" data-id=\"120135\">compensation <\/a>measures, the CMA has recommended a new regulatory framework covering the heating oil sector. According to the regulator, households using heating oil do not benefit from the same consumer protections that apply to electricity and gas customers, despite relying on the fuel for heating, hot water and cooking.<\/p>\n\n\n\n<p>The proposed framework would require suppliers to register and comply with <strong>minimum standards<\/strong> governing price quotations, order cancellations and access to independent dispute resolution. The CMA also recommends clearer information on payment plans and minimum order volumes, as well as the creation of a register to help identify and support vulnerable households.<\/p>\n\n\n\n<p>The regulator found that households in remote areas often face fewer supplier choices and higher delivery costs. It also noted that prices tend to be lower in Northern Ireland, where more than 60% of households rely on heating oil and shorter delivery distances help reduce costs.<\/p>\n\n\n\n<p>Responding to the findings, Chancellor <strong>Rachel Reeves <\/strong>said the market appeared to remain competitive but expressed concern about the lack of protection for households dependent on heating oil. She said the government would consider carefully what further action could be taken, following the CMA&#8217;s recommendations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The CMA has announced compensation for heating oil customers affected by cancelled orders during the recent price surge. Some households could recover hundreds of pounds, while the regulator is also pursuing further action against suppliers that have yet to cooperate.<\/p>\n","protected":false},"author":2,"featured_media":122976,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[],"class_list":["post-122974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/122974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=122974"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/122974\/revisions"}],"predecessor-version":[{"id":122977,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/122974\/revisions\/122977"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/122976"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=122974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=122974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=122974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}