Heating oil and other off-gas grid heating
This note sets out the regulation of the off-gas grid energy market, and possible sources of support for those who live off the gas grid and have to rely on other fuels such as heating oil or LPG to heat their homes.
Four million UK households (15%) are off the mains gas grid, and use a range of other fuels to heat their homes including heating oil, liquefied petroleum gas (LPG), solid fuels, mains electricity, and microgeneration. The UK average cost of heating a typical three bedroom house is around 50% higher with heating oil and 100% higher with LPG than with mains gas but there is limited opportunity for such consumers to switch fuel source. Those who live in 'park homes' and especially those using bottled gas may experience particular issues.
The GB and NI energy regulators cover only the on-grid ‘pipes and wires’ market. The off-grid market is regulated by the Office of Fair Trading (OFT) enforcing consumer protection and competition law. An OFT investigation into the off-grid market published in October 2011 has not resulted in any major changes to regulation of this market and the issue remains an on-going one.