Home heating oil: Stormont's economy minister to 'consider' UK report's call for greater regulation of Northern Ireland market
Stormont’s economy minister says she will consider recommendations for greater regulation of the home heating oil market, after a UK-wide review called for tougher regulations here.
The Competition and Markets Authority (CMA) found that prices tend to be lowest in Northern Ireland, where over 60% of households rely on heating oil.
However, it said there are “clear gaps” in protections available to heating oil customers compared with those connected to gas and electricity networks.
These included consistent standards of support for vulnerable customers and access to dispute resolution if there is an issue with a supplier.
It called on the Stormont Executive to act on three key recommendations. The first is to require suppliers to register and meet minimum standards – which include how prices are quoted, cancellations are managed and giving households access to independent dispute resolution.
Secondly, the report recommends requiring suppliers to “clearly signpost available payment plans and minimum purchase volumes”. Thirdly, the CMA has recommended a “register for vulnerable households to make it easier to protect them”.
Ulster Unionist Party economy spokesperson Diana Armstrong welcomed the recommendation for a new regulatory framework – saying her party has long called for greater oversight of the market, and arguing that the report “marks a positive step forward for consumers”.
The Fermanagh South Tyrone MLA said: “Northern Ireland households are heavily reliant on home heating oil, yet consumers have long lacked many of the protections available in other parts of the energy sector. I welcome the CMA's recognition of these gaps and its recommendation for stronger safeguards.
“This is an encouraging outcome for consumers and shows that raising concerns on behalf of the public can make a difference. While the market has many strengths, it is right that vulnerable customers are better protected and have access to proper redress when things go wrong.
“Regulation is only one part of the picture. With fuel poverty remaining a pressing issue right across Northern Ireland, this must sit alongside continued investment in schemes such as NISEP, so that households particularly those in rural areas reliant on oil, see real and lasting reductions in their energy costs.”
Economy Minister Dr Caoimhe Archibald said: “I welcome the CMA’s report on the home heating oil market and its recognition that our market operates differently from Britain, reflecting our much greater reliance on heating oil”.
The Sinn Fein minister said she would consider the CMA’s recommendations carefully “to ensure any action is proportionate, evidence-based and tailored to” Northern Ireland’s “specific market and regulatory circumstances”.
“We look forward to continued engagement with the CMA as this work progresses”, the minister said.
David Blevings, spokesperson for the Northern Ireland Oil Federation (NIOF), said: “this is good news for the local oil sector. We always knew the local market was competitive and it is great to see this confirmed by the CMA”.
“The CMA commented that ‘Overall, the evidence shows that the home heating oil market is typically competitive, with retail prices closely linked to wholesale prices and distributors’ operating margins generally thin’.
“With around 200 distributors competing for business, the market here is very competitive with consumers in NI buying their home heating oil at 1.5% below the GB average and 17% below the cost of kerosene in the Republic”
Regarding recommendations made in the report, Mr Blevings added: “we think consumers in NI are well aware of payment options and minimum order requirements but are happy to work with local government to review consumer protection initiatives, awareness of and access to alternative dispute resolution and codes of conduct”.
“NIOF already has a customer charter in place offering a framework for delivery standards and clear complaints procedure. All NIOF members have signed up to a customer charter which is supported by the Consumer Council and customers can ask for a copy of this documentation or download it from the www.nioil.com website,” added David.
The CMA report said: “The lack of protections becomes especially problematic during periods of volatility – for example, where demand increases as a result of more severe weather conditions or where supply is disrupted by geopolitical developments – both of which may become more common in future.
“At these times, heating oil households may face substantially higher prices, uncertainty over what they will pay or whether a delivery will arrive, and fewer options for urgent deliveries. At such times, people need confidence that they will be treated fairly”.