Over one third of a million people of pension age in the UK rely on oil for their heating. And while average heating oil prices can be a shocking 50% above gas, some older people will be paying as much as 100% more.
Now a campaigning group dedicated to relieving “oil fuel poverty” says that a great many of these pensioners are actually paying far higher rates for their oil than their younger neighbours – because they trust their suppliers and never query the price.
The problems this causes around fuel poverty mean that many of these people will be faced with the decision to heat or eat over the coming months during what is expected to be a bitterly cold winter.
The issue, says Marion Lathar, who runs the social enterprise “Oil Fuel Poverty Solutions” (OFPS), is not just about the high and fluctuating price of heating oil. “The problem for a huge number of older people is that they trust their oil supplier to top up their tank.
“They do not negotiate a price, and they do not realise that this “auto top up” arrangement means they may well pay a hefty premium because it has been a small delivery. It simply appears on their next statement.
“We have evidence of people paying over 20p a litre more for oil than the average price being charged on that day.”
Around 100,000 oil users in the UK – a high percentage of them people living on a pension – have opted for an arrangement where oil is supplied by a single supplier without anyone checking how much is in the tank.
“The attraction for older people,” says Tony Watts, who chairs the South West Forum on Ageing, “is that they are told that they will never run out, and that they can pay monthly. Both very reassuring features… but they come at a price.
“The company will then deliver at regular intervals to fill the tank. This is usually at a time convenient to the supplier when they have another delivery to make near by.
“The downside is that there is no discussion about the price, and we have seen statements from customers where they are being charged over 20p per litre more than the average price that day.
“These are often very trusting customers who don’t question what they are being charged and are not on the Internet – and so cannot easily check whether what they are paying is fair.”
In response to the huge problem of oil fuel poverty, a new website and helpline has now been set up – www.seniorbuyingpower.co.uk / 01993 224111 – to help individuals as well as community groups. The oil delivery and price is negotiated on behalf of customers by Community Buying, the UK’s biggest negotiator of community oil, with seniors being entitled to discounted membership.
“By harnessing the buying power of the nation’s older population, I’m hoping to make a radical difference to what people pay for their oil,” says Tony Watts. “Typically this will mean savings of between 8 and 15% compared to what you would pay as an individual. For someone currently paying on a ‘top up’ arrangement, it could easily be a 30% saving or more.”
“We would urge anyone who currently has a top up arrangement with a supplier to check on their last statement how much they are paying for their oil,” says Marion Lathar, “and to get in contact with Community Buying (01993 224111) and check if this is a fair price.
“We can arrange for them to be registered as a priority customer if appropriate, so they should not have to worry about ever running out of oil.
“These are some of the poorest and most vulnerable people in our community, but far too many are paying through the nose for their heating.”
Price example:
Someone living in a two bedroom home and using 15,000 kWh can expect to typically pay £500 a year for their gas (for heating and hot water).
For the same amount of energy with oil, the price during 2013 has fluctuated between £750 and £950 (based on using 1500 litres pa).
For someone on auto top up and paying 20p a litre more for their oil, their equivalent bill will be between £1050 and £1230.
The Community Buying price during 2013 has (on average) been 5 pence per litre below the industry average price.
