Northern Ireland heating oil suppliers face tougher rules after watchdog review

Companies that supply home heating oil in Northern Ireland are set to operate under stricter rules following an investigation by the UK's competition regulator, BBC News reports. The new framework will not, however, introduce the kind of price caps that apply to gas and electricity.

The Competition and Markets Authority (CMA) examined the heating oil market in Northern Ireland and elsewhere in the UK. Economy Minister Caoimhe Archibald told MLAs she would act on its recommendations, which pointed to a need for stronger consumer protection, help for vulnerable households and more formal ways of settling disputes.

What changes

The measures outlined by the minister include:

• A mandatory code of conduct for heating oil suppliers.
• An expanded role for the Consumer Council in helping customers resolve disputes with suppliers.
• An opt-in register for vulnerable consumers, to be developed under the Consumer Council's leadership.

Archibald described the package as "proportionate" and said it would strengthen existing protections at minimal extra cost.

Why prices were not capped

Heating oil matters more in Northern Ireland than anywhere else in the UK, with roughly two thirds of households relying on it. Prices there rose by a record 92% in a single month in March, at the start of the US-Israel attack on Iran, exceeding the previous largest jump of 59% recorded in March 2022 after Russia invaded Ukraine.

The CMA concluded that the surge mostly reflected higher wholesale costs rather than supplier behaviour. Its analysis found that prices climbed even more sharply in Scotland and Wales, where the fuel is mainly used in remote rural areas. Northern Ireland tended to see lower prices overall, which the watchdog linked to a competitive field of suppliers and a market large enough to keep delivery costs down. The authority did not recommend price controls, suggesting they could prove counterproductive.

What it means for businesses and customers

For fuel distributors and other firms in the heating oil supply chain, a compulsory code of conduct is likely to mean clearer obligations on how they deal with customers, handle complaints and treat vulnerable households. Businesses that rely on heating oil for their own premises may also benefit from a more formal route for resolving disputes. With prices still left to the market, comparing suppliers and understanding the new standards will remain important for anyone buying the fuel.