Last Updated on : 10 September 2026
The CMA heating oil compensation process is now active for customers affected by cancelled heating oil orders during the sharp price rises earlier in 2026.
The Competition and Markets Authority confirmed on 28 August 2026 that suppliers under review had agreed to compensate affected customers.
Eligible customers do not need to submit a general application or use a claims portal; instead, they are being contacted directly.
Customers whose orders were cancelled and who then paid more for replacement heating oil may receive the difference between the original and replacement costs.
Those who could not afford, or did not purchase, replacement oil should have their original order honoured at the price initially agreed.
Around 800 affected customers had already been contacted when the CMA announced the arrangements. The CMA estimates that customers forced to replace cancelled orders may have paid around £150 to £350 extra.
Why Is The CMA Paying Heating Oil Compensation?
The compensation follows major disruption in the UK heating oil market during early 2026.
Conflict in the Middle East pushed wholesale fuel prices sharply higher. At the same time, the CMA received concerns that some suppliers had cancelled previously agreed customer orders after prices had increased.
Customers generally received refunds for their original purchases. The problem was that many then had to place another order at a much higher price or remain without heating oil.
The CMA concluded that cancellations by some suppliers may have amounted to breaches of contract and sought financial redress for affected consumers.
Importantly, the wider market investigation did not conclude that the heating oil industry had broadly engaged in price gouging. Much of the retail increase was explained by higher wholesale costs.
The regulator’s concerns centred more heavily on weak consumer protections, cancellation practices and the treatment of vulnerable customers.
Who Qualifies For CMA Heating Oil Compensation?
Eligibility mainly depends on what happened to an existing heating oil order during the price surge.
A customer may qualify where:
- A Heating oil order had already been placed
- The Supplier subsequently cancelled that order
- The Cancellation occurred during the 2026 market disruption
- The Customer later purchased replacement heating oil at a higher price
- The Supplier is participating in the CMA compensation arrangements
Customers who did not buy replacement oil may still receive redress because participating suppliers are expected to honour the original contract at its agreed price.
The CMA says affected customers either have been or will be contacted directly. CMA heating oil compensation announcement
Do Customers Need To Make A Compensation Claim?
There is currently no universal CMA claims form or compensation portal that eligible heating oil customers need to complete.
The CMA says customers do not need to take action at this stage because affected consumers are being identified and contacted directly.
Around 800 customers had already been notified by 28 August 2026.
If you believe your order falls within the affected group but you have not received contact, it is sensible to contact the supplier that handled your original order using independently verified contact details.
Do not assume that an unsolicited message is genuine simply because it refers to CMA compensation.
What Evidence Will Customers Need?
Customers claiming the additional amount paid for replacement heating oil may be asked to prove the replacement purchase.
The CMA specifically identifies evidence such as:
- Original Order details
- Replacement Order receipt
- Delivery Note for the replacement heating oil
The key documents are therefore the receipt and delivery note relating to the replacement purchase.
Customers should keep these records together with their original order confirmation and cancellation correspondence in case additional details are requested.
How Much CMA Heating Oil Compensation Could You Receive?
There is no single fixed payment.
Where replacement heating oil was more expensive, compensation is intended to cover the difference between the original order and the replacement order.
For example, if an original order cost £400 but replacing it after cancellation cost £650, the potential compensation would normally relate to the additional £250 paid.
The CMA estimates that affected consumers may have spent around £150 to £350 more when replacing cancelled orders.
Customers who never bought replacement oil are treated differently. Their supplier is expected to honour the original order at the originally agreed price.
How Much Did Heating Oil Prices Rise In 2026?
The scale of the price shock explains why cancelled contracts had such a significant financial effect.
According to CMA figures, Scotland experienced the largest average increase between February and March 2026.
| Nation | February 2026 | March 2026 | Increase |
| Scotland | 69p per litre | 113p per litre | +44p |
| Wales | 64p per litre | 106p per litre | +42p |
| England | 65p per litre | 103p per litre | +38p |
| Northern Ireland | 57p per litre | 97p per litre | +39p |
Across the UK, the average price increased from approximately 64p per litre in February to 104p in March, a rise of 64%.
Prices then peaked at around 123p per litre in April, approximately 92% above the February level.
By May, the average had fallen by around 15% to 104p per litre, although that remained significantly above pre-crisis prices.
A typical 500-litre order cost around £320 in February and approximately £520 in March, adding roughly £200 to one delivery.
For additional regional context, changes in the price of 500 litres of heating oil in Northern Ireland show why sudden market movements can have a substantial effect on both household and small-business cash flow.
Does CMA Heating Oil Compensation Apply In Scotland?
Yes. Scotland is part of the CMA’s UK heating oil analysis.
In fact, Scotland experienced the largest average increase in the CMA’s February-to-March figures, with prices increasing from approximately 69p to 113p per litre.
Customers in Scotland should therefore not assume that they are outside the scope simply because of their location.
Eligibility for compensation depends primarily on the circumstances surrounding the cancelled order and whether the relevant supplier is covered by the arrangements.
Are LPG Customers Included?
The current compensation arrangement relates specifically to heating oil orders.
Customers using liquefied petroleum gas, or LPG, should not assume that they qualify for this particular CMA heating oil compensation process.
The CMA has dealt with LPG separately and has written to LPG suppliers reminding them of their consumer-protection obligations.
No equivalent LPG compensation arrangement has been announced as part of the heating oil scheme.
This distinction matters because both heating oil and LPG customers experienced significant price pressure during the same period.
How Can Customers Avoid CMA Compensation Scams?
Direct contact creates an obvious opportunity for fraudsters to imitate suppliers or government bodies.
MoneySavingExpert reported that it asked the CMA how customers could confirm that compensation contact was genuine, but the regulator did not provide a specific verification method at that stage.
Customers should therefore be cautious.
- Do Not pay a fee to release compensation
- Do Not provide banking passwords or security codes
- Do Not follow unexpected links without checking them
- Verify the supplier using contact details obtained independently
- Keep the original order and cancellation information available
- Check the official CMA case information if the message appears suspicious
The CMA’s enforcement case remains open and lists Andrew Groves as Project Director and Hayley Fletcher as Senior Responsible Officer. Official CMA heating oil enforcement case
What Is The Northern Ireland £100 Heating Oil Scheme?
Northern Ireland customers should distinguish CMA compensation from a separate government support programme.
The £100 Home Heating Oil Support Scheme went live on 9 September 2026 and is expected to support around 340,000 households.
Unlike CMA compensation, this scheme does require an application.
Applicants may qualify if heating oil is their main source of heating and they either receive a qualifying benefit or have net annual household income below £30,000 after tax, National Insurance and pension contributions.
Only one £100 digital prepaid card is available for each eligible residential address.
Applications remain open until 31 March 2027.
The official application and eligibility information is available through Northern Ireland’s home heating oil support service.
This £100 scheme is separate from CMA compensation. Someone could potentially be relevant to both depending on their circumstances.
Why Rural Households And Businesses Remain Exposed?
Heating oil is particularly important for rural communities that do not have access to the mains gas network.
Around 1.5 million UK households depend on heating oil. Remote customers may also have fewer suppliers to choose from and face higher delivery costs.
The Country Land and Business Association noted that Wales usually carries a heating-oil premium of around 5p per litre over England, although that difference narrowed during the crisis.
It also warned that geopolitical developments could keep the market volatile despite periods of falling prices.
For rural businesses, farms, hospitality operators and home-based businesses, sudden changes can create a cash-flow problem because heating oil is normally purchased in relatively large upfront quantities rather than through monthly utility billing.
CMA Heating Oil Investigation Timeline
| Date | Development |
| 9–12 March 2026 | Thousands of consumer complaints about prices, cancellations and extra charges were gathered and raised with government and the CMA |
| 20 March 2026 | CMA formally launched its heating oil market study |
| 15 July 2026 | Market study closed and final recommendations were published |
| 27 August 2026 | Separate consumer enforcement case formally opened |
| 28 August 2026 | CMA confirmed compensation arrangements and direct customer contact |
| 9 September 2026 | Northern Ireland’s separate £100 heating oil support scheme went live |
The consumer campaign in March was significant because complaints raised concerns about already-paid orders being cancelled, customers being asked for additional payments and replacement orders becoming dramatically more expensive.
The CMA market study itself ran from 20 March to 15 July 2026, while the newer consumer enforcement case remains open.
What Happens Next?
The compensation process is continuing rather than being treated as a completed one-off exercise.
The CMA says it will continue working with suppliers to finalise arrangements and make sure eligible consumers receive what they are due.
The wider policy issue also remains unresolved. The regulator has recommended stronger protection for heating-oil customers, including clearer pricing, improved rules around cancellations and greater support for vulnerable consumers.
That could eventually lead to a more formal regulatory structure for a market that currently does not provide consumers with protections equivalent to those available to mains gas and electricity customers.
Conclusion
The position on CMA heating oil compensation has changed substantially since July 2026.
Compensation is no longer merely under discussion. Eligible customers affected by cancelled heating oil orders are now being contacted directly, with around 800 already notified by the end of August.
Customers who paid more for replacement oil should receive the difference between the two orders, while those who did not replace the cancelled delivery should have their original agreement honoured.
Scotland is included, replacement receipts and delivery notes should be retained, and LPG users should not assume that the heating-oil compensation process applies to them.
Northern Ireland residents should also check the separate £100 Home Heating Oil Support Scheme, which is now open and runs until 31 March 2027.
Frequently Asked Questions
Is CMA Heating Oil Compensation Now Confirmed?
Yes. The CMA confirmed on 28 August 2026 that compensation arrangements had been secured for affected heating oil customers.
Do I Need To Apply For CMA Heating Oil Compensation?
No general application is required. Eligible customers are being contacted directly rather than being asked to use a universal claims portal.
How Much Compensation Could I Receive?
There is no fixed amount. Customers who purchased more expensive replacement oil should receive the difference between their original and replacement costs. The CMA estimates some customers paid around £150 to £350 extra.
What Documents Should I Keep?
Keep your replacement-order receipt and delivery note. It is also sensible to retain your original order confirmation and cancellation correspondence.
Can Customers In Scotland Receive Compensation?
Yes. Scotland is included in the CMA’s heating oil investigation and recorded the largest average price increase between February and March 2026.
Are LPG Customers Covered?
Not by this particular heating oil compensation arrangement as currently announced. LPG suppliers have been considered separately by the CMA.
Is The Northern Ireland £100 Oil Payment The Same Scheme?
No. Northern Ireland’s £100 Home Heating Oil Support Scheme is a separate government programme. It requires an application and is open until 31 March 2027.
Leave a Reply