CMA Orders Compensation for 1,700 Heating Oil Customers

UKIFDA chief executive Ken Cronin said: "We will work with all government bodies on the recommendations set out in this report."

The CMA has not said how many suppliers have agreed to compensate customers, how many customers will receive a payout, or how much they will get. "Those who paid more to replace their cancelled order will receive a payment covering the difference. Those who did not buy replacement oil will have their original orders honoured at the agreed price," it said. "[We are] preparing to take court-based enforcement action against firms that fail to compensate customers voluntarily."

The BBC understands more details will be provided once the scheme is running.

Some 1.5 million UK households depend on heating oil. Most of them are in Northern Ireland, where the watchdog says 60% of households rely on it. They do not have the same consumer protections as electricity and gas customers.

Anthony Maines, 31, from Seaton Delaval in Northumberland, said he paid £463.83 for 700 litres of heating oil on 28 February. He placed the order through a broker when he saw the US and Israel first attacked Iran. The order was cancelled a few days later. He was then forced to reorder 500 litres for around £700 through a different broker. He received a partial resolution through his broker who agreed in May to honour the original price. By then he had already paid elsewhere at a higher price. "It felt like I was being punished for doing the sensible thing," he said.

The CMA's report on the heating oil sector follows a four-month investigation launched in March. The regulator is now consulting on the proposed new rules. A timeline for court action against non-compliant suppliers has not been set.