Hundreds of people who were affected by suppliers cancelling heating oil orders when prices surged following the Iran war have been told they will receive compensation, the UK’s competition watchdog has said.
Around 800 people have been notified and hundreds more are set to be contacted, the Competition and Markets Authority (CMA) said.
The CMA said suppliers had joined its compensation scheme after it raised concerns about possible breaches of customer contracts.
Wholesale gas and oil prices spiked when the US-Israel’s war with Iran began at the end of February, leading average heating oil prices to soar by 92% at their peak.
Some customers had their contracts cancelled by suppliers as a result and were forced to reorder at much higher costs.
The CMA said around 1,700 customers were likely to have been affected, with some people paying between £150 and £350 more for replacement heating oil.
Customers whose suppliers have joined the compensation scheme, and who paid more for replacement oil, will receive a payment covering the different between the original and replacement order.
Customers who’s contracts were cancelled but who did not purchase a replacement will have their original order honoured at the agreed price.
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.
“They’ve now agreed to compensate those affected by issuing compensation or honouring their original contracts.”
Home heating oil is used by around 1.5 million households in the UK to warm their homes and provide hot water.
In Northern Ireland, around 60% of homes rely on the fuel, compared with the UK average of just over 5%.
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