Households have been hit with energy bills of more than £1,000 as prices rise following disruption in global oil markets.
An MP has accused suppliers of “blatantly profiteering” from the Middle East conflict and called for an investigation into the sudden increases.
Harriet Cross, who represents Gordon and Buchan, has demanded the Competition and Markets Authority (CMA) launch a formal investigation into the sector.
The Conservative MP reported that constituents have witnessed costs for 700 litres of heating oil surge from approximately £500 in January to more than £1,000 following the outbreak of conflict.
Ms Cross has simultaneously written to Energy Secretary Ed Miliband, urging Government intervention to support rural families struggling with the dramatic price increases.
She is additionally pushing for mandatory price transparency measures across the industry.
In her correspondence to the CMA, Ms Cross detailed alarming practices reported by her constituents.
“I have been contacted by constituents who have experienced behaviour from suppliers that can only be described as blatant profiteering,” she wrote.
The MP described instances where families had scheduled deliveries cancelled, only to receive calls the same day offering identical orders to the same address at twice the original cost.
Harriet Cross has demanded the Competition and Markets Authority (CMA) launch a formal investigation into the sector
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“These households are disproportionately rural, often elderly and vulnerable, and I believe there is evidence of long-standing consumer harm which warrants a CMA investigation under section 131 of the Enterprise Act 2002,” Ms Cross stated.
Her letter to Mr Miliband requested the Government formally approach the CMA chief executive to examine pricing transparency within the heating oil and LPG markets.
Approximately 1.5 million households across the United Kingdom depend on home heating oil, with global market volatility triggered by Middle East instability causing prices to spike immediately.
The situation is particularly acute in Aberdeenshire, where an estimated 45 per cent of properties are not connected to the mains gas network and must rely on heating oil or LPG.
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Approximately 1.5 million households across the United Kingdom depend on home heating oil
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Crucially, these customers have no protection from Ofgem’s energy price cap, which currently shields mains gas and electricity consumers until the end of June.
This regulatory gap leaves off-grid households entirely exposed to market fluctuations and supplier pricing decisions.
Ms Cross noted that affected residents have also faced extended waiting times for deliveries alongside the soaring costs.
The CMA issued a warning on Monday, stating it expected customers who had placed heating oil orders to receive their fuel at the originally agreed price.
The watchdog declared it “won’t hesitate to take action” should it uncover evidence of breaches to consumer or competition law
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The watchdog declared it “won’t hesitate to take action” should it uncover evidence of breaches to consumer or competition law.
Earlier that day, Mr Miliband and energy minister Michael Shanks contacted Ken Cronin, chief executive of the UK and Ireland Fuel Distributors Association, informing him the CMA was actively gathering evidence regarding fair treatment of consumers.
Their letter emphasised that the industry “remains fully subject to consumer protection and competition law” and reminded distributors of their obligations under the UKIFDA customer charter and code of practice.
