New regulation for heating oil market, but no price controls
The Competition and Markets Authority has investigated the heating oil market in Northern Ireland and other parts of the UK.
Home heating oil suppliers in Northern Ireland will face stricter regulation in the wake of an inquiry by the UK's competition watchdog.
However it will not include the sort of price controls applied to the gas and electricity markets.
The Competition and Markets Authority (CMA) investigated the heating oil market in Northern Ireland and other parts of the UK. , external
The Economy Minister Caoimhe Archibald said she will now act on the CMA's recommendations.
"The CMA identified the need for stronger consumer protection, support for vulnerable households, and more formal dispute resolution arrangements," she told MLAs.
She said the changes she was announcing are "proportionate" and will enhance existing heating oil consumer protection "at minimal additional cost".
The measures include a mandatory code of conduct for heating oil suppliers and giving the Consumer Council an enhanced role in helping consumers resolve disputes.
The Consumer Council will also lead in the creation of an opt-in register for vulnerable consumers.
About two thirds of Northern Ireland households use home heating oil, by far the highest of any UK region.
At the start of the US-Israel attack on Iran in March, heating oil prices in Northern Ireland rose by a record monthly rate of 92% .
That compared to the previous largest spike of 59% in March 2022, after the Russian invasion of Ukraine.
Analysis by the CMA suggested that prices rose even more steeply in Scotland and Wales, where heating oil is typically used in remote rural areas.
It found that prices tended to be lower in Northern Ireland overall as it has a competitive range of suppliers and a market which is big enough to minimise delivery costs.
The CMA said that the huge spike in prices at the start of the Iran conflict largely reflected rising wholesale costs.
It did not recommend price controls suggesting they could be counterproductive.
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