UK Government Sets Out New Protections for Heating Oil Users

Many UK households using heating oil do not have the same consumer protections as those using gas or electricity, according to findings published by the Competition and Markets Authority (CMA) and the government’s subsequent policy response.

The CMA launched a market study into the retail supply of heating oil for domestic use on 20 March 2026, concluding its review on 15 July 2026. The final report, published by the CMA, identified areas where heating oil customers face fewer protections and occasional contract issues compared to other energy users.

The CMA found that around 1.5 million households in the UK rely on heating oil and highlighted that these consumers are not covered by the same regulatory safeguards as gas and electricity customers. The study also estimated that approximately 1,700 customers had orders cancelled in breach of contract, which resulted in additional costs for some households.

In March 2026, the government announced more than £50 million in targeted financial support for low-income households that use heating oil. This measure was intended to assist those facing higher energy costs and limited consumer protections.

What the numbers show

• 1.5 million UK households use heating oil for domestic purposes.
• About 1,700 customers experienced cancelled orders, with extra costs between £150 and £350.
• The Boiler Upgrade Scheme provides a £9,000 grant for eligible off-gas-grid properties.

The Boiler Upgrade Scheme offers a grant of £9,000 to eligible properties that are not connected to the gas grid and are replacing oil or LPG heating systems. This initiative is part of the government's broader approach to support energy efficiency and alternative heating solutions.

On 13 October 2026, the Department for Energy Security and Net Zero published a policy paper outlining the government’s response to the CMA’s findings. The document detailed plans to introduce a proportionate regulatory regime for home heating oil distributors, which would include requirements for authorisation, priority services, codes of conduct, access to alternative dispute resolution (ADR), enforcement powers, and monitoring obligations.

The government also stated its intention to work with industry groups such as the UK and Ireland Fuel Distributors Association (UKIFDA), the Northern Ireland Oil Federation (NIOF), and consumer bodies. This collaboration aims to improve interim consumer protection measures, raise awareness of ADR options, and strengthen codes of conduct for heating oil suppliers.

These actions are designed to address the gaps in consumer protection identified by the CMA and to provide greater support for households that depend on heating oil for their energy needs.

* This article is based on publicly available information at the time of writing.