Sir Keir Starmer says the Government “will not tolerate” heating oil suppliers profiteering from the crisis in the Middle East.
The Prime Minister will stress home heating oil costs must be “fair, transparent and justifiable” during a visit to Belfast on Thursday.
He will hold meetings with political leaders, including First Minister Michelle O’Neill and Deputy First Minister Emma Little-Pengelly, amid growing concerns over the impact the war in Iran is having on energy prices.
The issue of the costs of heating oil, which falls outside the Ofgem price cap, has been causing increasing alarm.
Last week, Shadow Energy Secretary Clarie Coutinho wrote to her government counterpart, Ed Miliband, calling for him to look into “shameful behaviour from rogue heating oil suppliers”.
She warned: “Families are reporting shameful behaviour from rogue heating oil suppliers which can only be described as blatant profiteering.
“Some have had previously booked deliveries cancelled by their supplier, only to be called back and offered to deliver the same oil, to the same address, on the same day, at twice the price.
“Many are being forced to order large minimum quantities of 500 litres, meaning they are suddenly facing extra bills of several hundred pounds just to keep their homes warm. This is unacceptable.”
Keir Starmer says he does ‘not tolerate’ heating oil suppliers profiteering
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The Government has asked the Competition and Markets Authority to look at heating oil prices.
The problem of pricing is felt keenly in Northern Ireland, where around two-thirds of domestic properties use home heating oil.
The Government said Sir Keir will use his visit to Northern Ireland to “highlight his relentless focus on cutting the cost of living for working people”.
A statement said: “Recognising that the majority of households in Northern Ireland rely on heating oil to heat their homes, the Prime Minister will send the strong message to companies that prices must be fair, transparent and justifiable, not inflated at the expense of working people.
The PM says home heating oil costs must be ‘fair, transparent and justifiable’
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PA“If companies hike prices without justification, the Government will act, including through regulation.”
The PM said: “Global instability has real impacts on the lives of working people across the UK, and I know families in Northern Ireland are worried about what the war in the Middle East could mean for their finances – especially given so many households rely on heating oil to heat their homes.
“Let me be clear, we will not tolerate profiteering or unfair practices.
“If companies fleece customers or rip them off, we will not hesitate to step in, and that includes on regulation.
“This Government stands with working people, no matter the headwinds.
“In Belfast I am spending my time meeting not only the politicians making decisions in Stormont, but also the people whose lives are shaped by conflicts abroad and the approach we take at home.”
Meanwhile, Energy Secretary Ed Miliband will meet some of the UK’s leading energy suppliers tomorrow to discuss the impact of the Iran war on bills.
Thanks to the Ofgem price cap, households are shielded from rises from April to July. But the longer the conflict continues, and the vital Strait of Hormuz remains closed, the greater the impact the energy shock will have on the economy, including, potentially, on domestic bills.
Chancellor Rachel Reeves said the government was working with the Competition and Markets Authority on any “price gouging”.
She will meet the competition watchdog and petrol retailers on Thursday.
On the same day, the country’s leading energy retailers have been invited to Mr Miliband’s Department of Energy Security and Net Zero for “open and candid dialogue”.
Mr Miliband will be joined by Martin McCluskey, the minister whose responsibilities include domestic energy bills.
It is understood that the hour-long meeting will invite attendees to “share reflections on impacts on consumers”, including consumer debt.
Politico quotes from what is said to be the invitation to the industry leaders. It reads: “This roundtable will discuss the ongoing situation in the Middle East and its implications for energy markets and consumers. We are keen to hear directly from suppliers about the real-world impact of global energy developments and to ensure that the voices of those most affected by price and supply volatility are central to our policy thinking.”
It continues: “This is an opportunity for open and candid dialogue, and your organisation’s perspective would be of considerable value.”
Ms Reeves appeared before Parliament’s Treasury Committee today. She said it would be “unwise to speculate” about the impact of the Iran war on UK inflation, growth or interest rates, but added that the Treasury is “looking at a number of scenarios”.
She told MPs: “It’s certainly not good for the British economy to have trade disrupted, and especially when so much oil and gas comes from that part of the world. But the best thing that we can do as a Government is to seek to de-escalate this conflict.”
Ms Reeves added: “The quicker we can de-escalate, the better it will be for all of those different economic variables.”
The International Energy Agency later agreed to the largest-ever release of strategic oil reserves in a bid to stablise the markets.