Heating oil customers grappling with significantly higher bills this winter have been promised improved regulation from the government. Ministers announced plans to tighten rules, boost competition, and provide clearer compensation channels for consumers experiencing issues.

These measures come as heating oil prices have nearly doubled over the past year, prompting calls from campaigners for these users to receive the same price cap protection afforded to regular gas and electricity tariffs in England, Scotland, and Wales. However, the government has not indicated any intention to implement such a cap, nor has it specified a timeline for the new regulations.

The government stated it will collaborate with the industry to establish a regulatory framework for the heating oil market, aiming to protect consumers and foster competition. In the interim, discounts on heat pumps have been offered to oil users, a voluntary code of practice is in effect, and minimum order volumes, which some customers have found problematic, will be reviewed. Domestic heating oil tanks typically range from 1,000 to 2,000 liters, and minimum order levels of 500 liters have forced some consumers to purchase more fuel than immediately needed.

Following a UK competition watchdog inquiry, it was revealed that 1,700 households faced re-ordering at higher prices or going without fuel after the outbreak of the US-Israeli war with Iran, incurring costs of up to £350. The Competition and Markets Authority (CMA) recommended strengthening sector regulation, a recommendation the government has accepted.

Energy minister Polly Billington acknowledged the difficulties faced by many heating oil customers, stating that energy is an essential good and that consumers should feel protected in the market. She emphasized the government's commitment to reforming the sector.

However, some consumers feel that off-grid households remain a "blind spot" for government policy. One heating oil customer from West Suffolk, who preferred to be identified only as Nick, shared that prices had more than doubled in a year, with quotes reaching 111p per liter. He described heating his home as "almost an investment" and called for tax cuts or the extension of the price cap to heating oil.

The £53 million support package announced in March for low-income heating oil families is distributed by local authorities, with varying eligibility criteria. While some compensation is available for those whose orders were canceled or prices increased, the broader regulatory changes are still in development.

Experts like Tim Buckman, chief executive of price comparison site Boiler Juice, advocate for stronger consumer protections, noting that the primary challenge remains the significantly higher cost of heating oil compared to other energy sources.