CMA secures compensation from suppliers for heating oil customers

CMA secures compensation from suppliers for heating oil customers

The Competition and Markets Authority (CMA) has stepped in over concerns that some suppliers cancelled orders amid the surge in heating oil prices, which may have been a contract breach. 

The CMA has secured compensation from suppliers after it found that hundreds of customers who ordered through an intermediary have been impacted.

While customers got refunds for their original orders after cancellations, many had to purchase replacement oil at much higher prices, while others were left without the essential fuel. According to estimates from the CMA, customers may have spent between £150 and £350 more for replacement heating oil.

After intervention from the CMA, customers whose suppliers have joined the compensation scheme, and who paid more for the replacement oil, will get a payment that covers the difference between the original and replacement order. 

Additionally, customers who did not buy replacement oil will have their original order honoured at the price agreed.

Eligible customers do not need to take any steps and either have been, or will be, contacted directly – with roughly 800 customers already being notified. Those looking for compensation for replacement purchases must give evidence of their replacement order, such as a receipt and delivery note.

Looking ahead, the CMA will continue to work with suppliers to complete the compensation process. 

Sarah Cardell, chief executive of the CMA, said: “Heating oil isn’t a luxury, it’s a necessity that many people rely on to have hot water and warm homes.

“During the price spikes earlier this year, hundreds of customers were left out of pocket or without fuel after their orders were cancelled. 

“That’s why we’ve pressed suppliers to put it right.”

Cardell added: “They’ve now agreed to compensate those affected by issuing compensation or honouring their original contracts.”

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