UKIFDA, the trade body for the liquid fuel distribution industry, has been advised that the government has confirmed that the £100 fixed payment to heating oil users will be made via electricity companies.

Through multiple discussions with the government, it became clear that because of the highly competitive nature of the heating oil market, with customers holding multiple accounts with different distributors, it means that a quick method of payment through the supplying oil companies without any duplication is not possible. Coal, LPG and biomass are likely to use the same method. 

The logic is that all homes use electric but not all use gas; the government can identify those not using gas and make the payment through their electric bills. The government is now designing details of the payment system, this will take time and customers should await further details from the government. We also note that eligible customers that do not have a relationship with an electricity supplier will be supported through an alternative route to make sure they do not miss out. Details of this alternative route will be confirmed by the government.

As before we recommend that customers do not wait if they need heating oil. As we head into winter, many oil heating customers will know that the best and most economical approach is to talk to their local distributors on a regular basis and not leave purchases to the last minute.