Watchdog Orders Compensation for Cancelled Oil Orders

Heating oil customers in the UK who experienced cancelled orders and increased prices following the US-Israel conflict in Iran are set to receive compensation. Approximately 1,700 households were compelled to reorder at significantly higher costs or face fuel shortages, incurring expenses of up to £350. Some suppliers have agreed to compensate affected customers, and the Competition and Markets Authority (CMA) is preparing legal action against companies that have not yet complied.

The CMA's investigation revealed that while price increases largely reflected a jump in wholesale oil costs, suppliers did not profit substantially from the crisis. However, the inquiry highlighted that heating oil consumers lack the robust protections afforded to those connected to the national energy grid. The watchdog has thus recommended new regulations concerning price quotations and cancellation procedures, alongside enhanced support for vulnerable consumers.