Hundreds of people affected by suppliers cancelling heating oil orders when energy prices spiked following the war with Iran are to receive compensation, the UK’s competition regulator has announced.
Around 800 customers have already been informed of the redress scheme, with hundreds more due to be contacted, the Competition and Markets Authority (CMA) said.
The watchdog said suppliers agreed to join the compensation process after concerns were raised regarding potential breaches of customer contracts.
Wholesale gas and oil costs jumped when the US-Israel war with Iran began at the end of February, driving peak average heating oil prices up by 92 per cent.
As a result, a number of customers had their contracts cancelled by suppliers and were left with no option but to reorder fuel at substantially higher costs.
According to the CMA, around 1,700 customers were likely impacted, with some individuals paying between £150 and £350 more to secure replacement heating oil.
Under the scheme, customers who paid extra for replacement fuel from participating suppliers will receive a payment covering the cost gap between the original and new order.
For consumers whose bookings were cancelled but who did not buy replacement oil, their original order will be honoured at the previously 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."
Around 1.5 million households across the UK depend on home heating oil to warm their properties and supply hot water.
In Northern Ireland, about 60 per cent of homes rely on the fuel source, compared to the overall UK average of just over 5 per cent.
