The government has announced plans to regulate the heating oil market for the first time, following incidents earlier this year when suppliers cancelled customer orders during a price surge and left households facing higher costs.
According to a statement published on GOV.UK, the reforms will introduce stronger consumer protections and formalise the standards that suppliers must meet. The decision comes after the Competition and Markets Authority (CMA) found that 1,700 households were owed compensation when their heating oil orders were cancelled by suppliers as prices rose.
The price spike followed the outbreak of conflict in the Middle East earlier this year, which drove heating oil costs to record highs across Britain. Families who had placed orders were forced to re-order at significantly higher prices after suppliers pulled out of contracts.
Energy Consumers Minister Polly Billington said thousands of customers “felt they had nowhere to turn” during the crisis. “We won’t accept that. Energy is an essential good and people should not have to think twice about whether they’re protected in the market,” she said in the government statement.
What the reforms will include
The government confirmed it will accept the CMA’s recommendation to strengthen regulation across the heating oil sector. The new regime will be developed in partnership with the industry and aims to protect vulnerable households from harm while promoting competition.
In the short term, consumer protections will be strengthened through updated Codes of Conduct that set binding rules for suppliers. One practice under review is the requirement for minimum order volumes of 500 litres, which forces some consumers to purchase more heating oil than they actually need.
The reforms will also establish clearer routes to compensation when suppliers fail to meet their obligations, addressing a gap that left many customers without recourse during the price crisis.
The government provided £53 million in immediate support to help vulnerable heating oil customers through the earlier crisis, but ministers have emphasised that structural reform is needed to prevent similar situations in future.
Heat pump grants expanded
Alongside the regulatory changes, the government has increased the discount available to heating oil users who switch to heat pumps. The Boiler Upgrade Scheme now offers a £9,000 grant to households currently using heating oil, up from the standard £7,500 available to other customers.
According to the statement, the increased grant has driven a surge in applications. In July, applications were 81 per cent higher than the previous year. In August, 1,042 voucher redemptions were for the heating oil grant, representing nearly a third of all vouchers redeemed that month.
What this means for Poles in the UK
Polish families living in rural areas of the UK—particularly in Scotland, Wales, Northern Ireland and parts of England—are more likely to rely on heating oil because mains gas is not available. If you use heating oil, these reforms should give you stronger protections if prices suddenly rise or your supplier cancels your order.
If your order was cancelled earlier this year during the price spike, check whether you are among the 1,700 households entitled to compensation. The CMA identified affected customers, and you should have been contacted by your supplier or can raise the issue directly.
If you are considering switching from heating oil to a heat pump, you may now be eligible for a £9,000 grant under the Boiler Upgrade Scheme. This is £1,500 more than the standard grant and is designed specifically for households using heating oil. You can apply through the scheme’s official website, and vouchers are processed through certified installers.
The new regulations are still being developed, but you can expect clearer terms in supplier contracts, better complaint procedures, and a review of minimum order requirements that currently force many customers to buy 500 litres at a time. Keep an eye on official announcements from the government and Ofgem as the rules are finalised.
