Oil is Officially the Cheapest form of Energy

Oil is Officially the Cheapest form of Energy

The Trade association for the Heating Oil Distribution industry, Federation of Petroleum Suppliers (FPS) is pleased to announce that heating oil is the cheapest form of energy for 12 months on the run following the release of the most recent energy comparison report produced by Independent provider of comparative home heating costs, Sutherland Tables, who has confirmed that oil has been the cheapest fuel for home heating for the past year.

Mark Askew Chief Executive of the FPS comments: “The average annual heating costs for heating oil users have fallen every quarter for the last three years and since April 2015 the price of domestic heating oil has fallen by 36%.

The latest figures show that heating a typical three bedroom home on oil, using a condensing boiler is now just £690 per annum. Even with a conventional boiler, that’s nearly half the cost of the nearest alternative. If you use LPG the average cost is £1448 per annum, Electricity is £1588 per annum and traditional gas heating £1007 per annum. This means that an oil condensing boiler is also substantially cheaper to run than any renewable heating option with Wood pellets costing £1388 per annum and air source heat pump radiators £1447 per annum.”
Due to the low cost and as we enter the summer months the FPS has launched ten top summer tips to help homeowners get the best out of their heating systems and thus save more money.

The ten top summer tips are:

1. Check your stock of oil - have you got any room for a summer top up? Your fuel distributor will not however fill your fuel tank completely full during hot weather. Fuel must have room to expand.
2. Keep between fifteen and twenty inches of oil in the bottom – emergency deliveries are expensive and you also run the risk of disrupting the sediment that settles at the base of your tank if you refill it when it’s too low, which can clog up your supply pipe and lead to costly repairs
3. Consider your future oil requirements now, and look to buy as much as possible during the summer months when prices are often lower than in winter.
4. Place the biggest order of oil you can – maybe ask your neighbours if they want to place their order with yours, as generally the more you order the less you pay on a per-litre basis and if your local supplier has less to travel if delivering to a few households at the same time they will save on delivery costs which can be passed on to consumers.
5. Ensure you order you heating oil from an FPS Member who adheres to the FPS Code of Practice. To do this email or ring the FPS (Federation of Petroleum Suppliers) or use the ‘Find Your Local Distributor’ facility and take a look around the Oilsave website where you will also find advice about ordering oil and other useful hints and tips.
6. If you have difficulty in paying for your whole order in advance, look into cost-effective ways to help you to do this. Most oil distribution companies offer monthly payment schemes, and summer is the best time to start one off. Speak to your local distributor for advice. Alternatively, your local credit union may be able to help, and some oil buying schemes have a Pay-As-You-Go option.
7. If you are struggling to pay for fuel, check that you are receiving all the help that you are entitled to. Your local Citizens’ Advice centre can help you with this.
8. Check that your oil tank is as secure as possible against oil theft. Measures you can take include installing a tank lock, an alarm that goes off if your tank leaks, CCTV and security lights. Further advice is available here
9. Make sure that your insurance policy covers your oil tank – most home insurance policies do not include this in the standard cover. You need to be covered for loss of fuel through theft and oil spills, and the environmental clean-up of your property and any adjacent land in the event of a leak.
10. Inspect your tank regularly and have it serviced annually by a qualified oil-fired heating engineer. For more information on the Oftec website see: http://www.oftec.org/technicians/oil-technicians-home and http://www.oftec.org/consumers/consumer-home-guides
Mark Askew adds: “We have written to all rural MP’s urging them to spread the summer top tips message so that the 1.25 million off grid mainly rural homeowners can save more money on their energy costs and be prepared for winter and we are also urging Energy Minister Amber Rudd to consider more affordable measures to help off grid households cut energy costs and become greener in the process including the rolling out a boiler scrappage scheme, similar to the one launched in London earlier this year.”