CMA warns heating oil suppliers over cancelled orders and unfair contract terms

  • The CMA warned domestic heating oil suppliers to review consumer contract terms, particularly clauses limiting liability for cancelled or delayed orders.
  • Hundreds of customers who ordered through an intermediary site were affected, and suppliers provided voluntary compensation.
  • The Consumer Rights Act 2015 applies to written, verbal, negotiated and standard-form terms and notices, with unfair provisions not binding on consumers.

The Competition and Markets Authority (CMA), the UK competition regulator, has issued an open letter reminding domestic heating oil suppliers that consumer contract terms must be fair and transparent. The intervention followed concerns that suppliers cancelled orders as heating oil prices and demand surged after the conflict in the Middle East. The CMA secured voluntary compensation after finding that hundreds of customers who ordered through an intermediary site were affected. The warning focuses on exclusion and limitation clauses that reduce or remove suppliers’ liability for delays or failures to perform contracts. Under the Consumer Rights Act 2015, unfair terms and notices are not binding on consumers, and enforcement action can potentially result in financial penalties.

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