OFT boosts transparency on heating oil prices

Friday July 27th, 2012

Following Office of Fair Trading (OFT) action, GB Oils Limited, the largest supplier of heating oil in the country, has changed its domestic heating oil contracts, ensuring quoted prices do not increase from the time an order is made until the customer is billed on delivery.

The OFT has secured legally binding undertakings from GB Oils to change its terms and conditions ensuring prices quoted at order remain fixed until delivery.

Previously, when a consumer ordered from a supplier, ‘spot’ prices are quoted that reflect the current market price of oil.

This OFT action follows on from its 2011 Off-Grid Energy Market Study, which identified concerns that some suppliers may not be treating their customers fairly.

Mary Starks, Senior Director in the OFT’s Services, Infrastructure and Public Markets Group, said: “Customers need to know where they stand when they are dealing with suppliers. The action we have taken will allow consumers to buy with confidence even during periods when the weather is snowy and prices are changing rapidly.”

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