On Friday the Office of Fair Trading (OFT) published its findings into its investigation into the heating oil market. The OFT has taken action to prevent consumers being misled when searching online for heating oil supplies.
The OFT found that some websites offering to find consumers the best price for heating oil were not clear about whether they were price comparison sites or sites for ordering heating oil directly from a single supplier.
The OFT has secured undertakings under the Consumer Protection from Unfair Trading Regulations (CPRs) from WCF Fuels Limited and Boiler Juice Limited which prevent them from engaging in business practices that could be misleading.
This follows an OFT investigation which found that:
· WCF Fuels Limited, which operates the website fuelfighter.co.uk, claimed to make price comparisons but only quoted prices for its own products and services. It also used false customer testimonials on the site.
· boilerjuice.co.uk, operated by Boiler Juice Limited, whilst a price comparison website providing price quotations from GB Oils Limited well as price quotations from other non-related heating oil distributors, was not transparent about its links to parent company DCC Plc, which owns GB Oils Limited, the largest heating oil distributor in the UK.
The businesses investigated have co-operated with the OFT’s investigations and voluntarily made changes to their websites.
Following the massive price hikes last winter, Sarah Newton MP has worked with Kevin Bennetts of local firm Consol Oils, and raised the issue with the Minister and in Parliament and pressed for the intervention of the OFT.
Commenting, Sarah said: “This is a first step and very welcome one in getting a fair deal for people heating their homes with oil. I am looking forward to the rest of their report in October to see what more can be done. We are all very worried about the rising costs of keeping homes warm and I want to make sure my constituents have all the information, advice and help that is available to keep warm this winter. I have produced a Help Sheet which is available on my website, www.trurofalmouthconservatives.co.uk by clicking the ‘Energy Help Sheet’ tab at the top of the page, or by contacting my office.
“I urge anyone worried about the cost of heating oil to buy before winter kicks in to avoid paying peak prices.
“People can also cut the price they pay by getting a discount through buying with a group of neighbours, getting several quotes to find the best price, and finding out about grants and schemes which could make their homes more energy efficient. Cornwall Energy Plus supported by Cornwall Council has schemes that can help.”
Energy Minister Charles Hendry said: “It was an issue of great concern last winter that people could not get accurate comparisons of oil prices, and did not know which companies had a direct interest in the websites themselves.
“This decisive action will prevent people being misled and sends a clear signal that a fair and open market is essential for consumers to make informed decisions about which suppliers to use for the best price.”
The investigation was carried out in connection with an OFT market study into the supply of energy to the four million households who are not connected to the mains gas grid. The outcome of this study will be published in October 2011.