Price switching puts oil supply firms in hot water with OFT

HUNDREDS of thousands of households across Scotland could be receiving unfair treatment from off-grid energy suppliers, according to regulators.

The Office of Fair Trading (OFT) has warned that some suppliers of heating oil – used extensively in rural areas – have been charging customers a different price from that quoted when their order was placed.

The finding, which emerged during a study of the off-grid market, has prompted the watchdog to launch an investigation into the alleged practice.

Consumer groups have welcomed the OFT’s pledge to scrutinise instances of “dodgy pricing” and warned that those Scots homes without access to gas heating are more likely to fall into fuel poverty.

In a report into off-grid energy published yesterday, it states: “We received complaints that some heating oil suppliers were charging a different price on delivery from that quoted when the order was taken, particularly during the severe weather last December. The OFT is now examining this and related practices.”

Clive Maxwell, the OFT’s executive director, said it would seek to “protect” those households who rely on fuel sources such as heating oil.

“We have real concerns about whether consumer protection law is being complied with in all cases,” he said. “It is important that the off-grid energy sector works well and that people who rely on it are protected, which is why we have already taken action to increase transparency on websites and are undertaking a wider examination of pricing practices.”

According to the OFT, more than one in five Scots households – around 488,000 – are off-grid, with the proportion (21 per cent) higher than the UK average of 15 per cent. Some 135,000 of those homes use heating oil, burning 200 million litres a year supplied by 25 distributors. The vast majority are in rural areas such as the Highlands and Islands.

Andrew Faulk, energy expert at Consumer Focus Scotland, said: “It is welcome that the OFT is looking further into issues on dodgy pricing practices and contract lock-ins. But as many customers in Scotland will be worried about prices this winter, they need to see action taken quickly and strong protections in place.”

He also called for government support for homeowners to properly insulate their properties, adding: “As those without gas heating are so much more likely to be in fuel poverty, they should be a key target for help.”

Fuel poverty charity Energy Action Scotland said the practice of the delivery price changing from what customers were initially quoted must be “stamped out.”