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CMA orders compensation scheme for heating oil price hikes
The CMA said wholesale oil prices rose from about $70 a barrel in February to nearly $120 by the end of March, pushing average retail heating oil prices up at their peak by 92%.
The UK Competition and Markets Authority will require compensation for heating oil customers whose orders were cancelled and prices raised after the US Israel war with Iran disrupted crude supply and drove wholesale prices higher, BBC Business reported.
The CMA said about 1,700 households were affected, facing a choice to re order at significantly higher prices or go without fuel, with costs reportedly reaching up to £350.
In its investigation, the CMA found that heating oil price increases after the Iran war largely reflected rising wholesale costs, and that suppliers had not profited materially from the crisis. The regulator also said heating oil customers were less protected than households supplied through the energy grid.
The CMA said it is preparing legal action against firms that have not agreed to compensate customers, and it recommended changes to how prices are quoted, how cancellations are handled, and better support for vulnerable consumers. BBC Business added that the regulator has not yet disclosed how many suppliers agreed to compensate or how many customers will receive payouts.
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