Heating Oil Customers to Receive Compensation After Cancelled Deliveries

Around 1,700 heating-oil customers could receive compensation after the Competition and Markets Authority (CMA) found they may have experienced breaches of contract during a period of severe energy market disruption.

On 15 July 2026, the CMA announced that several suppliers had agreed to compensate affected customers after cancelling deliveries during the Middle East energy price shock and later offering replacement deliveries at much higher prices. The regulator is preparing enforcement action against firms that have not reached an agreement.

Some customers had their original orders cancelled before being offered replacement deliveries at significantly higher prices. Those who paid more for replacement heating oil are expected to receive compensation covering the additional amount they paid, which the CMA estimates was typically between £150 and £350.

Customers who did not purchase replacement heating oil are expected to have their original contracts honoured or, where that is no longer possible, be placed in the position they would have been in had the contract been fulfilled.

The CMA is also calling for stronger long-term protections for the UK’s estimated 1.5 million households that rely on heating oil. Its recommendations include minimum service standards, clearer pricing, better support for vulnerable households and access to independent dispute resolution.

The regulator has also recommended reviewing minimum order volumes, which can make heating oil harder to afford for households unable to pay for a large delivery upfront.

Unlike households connected to the gas grid, heating-oil customers often have fewer formal consumer protections and may have limited choice of supplier in their area. Timely deliveries can also be essential, particularly during colder months.

The latest action means some affected households could recover the extra costs they faced. More broadly, the CMA’s recommendations are intended to make the heating-oil market fairer and provide stronger safeguards when deliveries are cancelled or disputes arise.