Millions of households pay hundreds upfront to heat their homes - now the watchdog says they deserve better protection

Around 1.5 million households rely on heating oil to keep their homes warm, but unlike people on mains gas and electricity, they don't have the same consumer protections.

That's something the Competition and Markets Authority (CMA) wants to change.

The watchdog has recommended stronger safeguards after concerns about cancelled orders, poor communication and the limited options available when things go wrong. If the proposals are adopted, heating oil customers could benefit from clearer information, better protection if deliveries don't go to plan and access to independent dispute resolution.

It's a welcome step.

But for many households, the biggest challenge isn't what happens after they order heating oil. It's finding the money to pay for it in the first place.

Why heating oil can be so difficult to budget for

Unlike gas and electricity, heating oil is usually bought in large deliveries.

That means households often have to find several hundred pounds in one go to fill the tank. When prices rise unexpectedly, that can put enormous pressure on already stretched budgets.

Our customer Andrew Henderson, 68, from Rhyl, felt the full effects of fluctuating prices when costs shot up sharply at the start of the war in the Middle East.

“The oil price increases have hammered us. We have an oil-based heating system for the house, and the costs have just spiralled completely out of control.”

What was once manageable has quickly become unaffordable.

“I used to pay around £300 every other month for heating oil… That was already a significant chunk of our budget, but it was manageable when I was still working. But now, I've been quoted three times that amount, we're talking about nearly £900 a month just for heating oil.”

Andrew lives on state and private pensions with his partner, after being forced to stop work due to serious health problems, including multiple bypass surgeries.

The scale of the increase is hard to absorb, especially when you’re on a fixed income.

“When you're already struggling and living on just pension income, these kinds of price increases for essentials like heating are absolutely devastating.”

And it’s forcing choices no one should have to make.

“We're having to make impossible choices - do we heat the house properly or do we try to keep up with other essential payments? It's no way to live, especially when you're dealing with serious health issues and need to keep warm.”

What can you do if you're worried about your next delivery?

The CMA's recommendations won't reduce the cost of heating oil overnight, so it's still worth planning ahead where you can.

Prices can vary between suppliers, so shopping around before you order could save money. If paying for a full tank isn't realistic, ask whether a smaller delivery is available or whether the supplier offers a payment plan.

Try to avoid borrowing to pay for heating oil if possible.

Using credit to cover an essential bill isn't always avoidable, but if it's becoming a regular part of making ends meet, it could be a sign your budget is under pressure. Speak to us – we can help you understand your options and check whether there's any extra support available before debts start to build.

What happens next?

The Government will now consider the CMA's recommendations.

If they're taken forward, heating oil customers could finally receive many of the protections that households on mains gas have had for years.

That won't make heating oil cheaper overnight, but it should mean people who rely on it are treated more fairly when things go wrong. For households already watching every penny, that's a step in the right direction.