The Department for Energy Security and Net Zero has asked the Competition and Markets Authority to gather evidence on the situation in the heating oil market and look at whether consumers are being treated fairly.
Secretary of State Ed Miliband and energy minister Michael Shanks wrote to the UK and Ireland Fuel Distributors Association after a meeting at DESNZ “in the light of significant increases in heating oil prices seen across the UK following the escalation of the conflict in the Middle East”. They said the “sharp rises have caused concern” among households and businesses, especially in rural communities.
The letter said “We recognise the work you are doing in difficult market conditions to deliver fuel and appreciate the constructive engagement demonstrated by industry representatives in recent days. However we want to make clear that the Government will take all action necessary to protect households”. They wanted to “strongly remind you of your commitments under the UK and Ireland Fuel Distributors Association (UKIFDA) Customer Charter and Code of Practice”.
The letter said the energy minister had spoken to the CMA “who will gather evidence on the situation in the market and look at whether consumers are being treated fairly”. It said, “ Where there is evidence that consumers are being treated unfairly, we will act accordingly and ensure that the appropriate regulatory bodies are engaged.” The letter said “our firm expectation is that pricing remains fair, transparent and fully justifiable, reflecting genuine market conditions”.
Read the full letter here