Energy Consumers Minister Polly Billington has announced plans to regulate the heating-oil market for the first time.
The Government has accepted a Competition and Markets Authority recommendation for stronger regulation after some suppliers cancelled customer orders when wholesale prices rose, forcing households to reorder at higher prices.
The competition watchdog found that 1,700 households were owed compensation. Ministers had already provided £53 million in immediate help during the price spike, but the new decision concerns longer-term market rules.
The Department for Energy Security and Net Zero will work with industry to develop a statutory regime covering standards, competition and routes to compensation. Industry codes of conduct are also due to be strengthened in the short term.
Billington has asked for practices requiring some customers to order at least 500 litres to be reviewed. The change could reduce the upfront cost for households that need smaller deliveries.
The reforms remain under development and no commencement date has been set. The Government said they were intended to give rural households protections closer to those available elsewhere in the energy market.
