When we turn the heating on or use hot water, most of us simply press a button or twist a tap and don’t have to give much thought to what’s going on behind the scenes. But for the 4.4 million households across Great Britain who aren’t connected to the mains gas grid, things can be more complicated.

Some households without gas boilers use electricity instead, and new low-carbon technologies like heat pumps offer these homes a more efficient way of heating. But we’ve called for more support for households with costly legacy electric heating systems like storage heaters. People in these homes can find themselves paying extra for the same energy use as an on-gas household.

And off-gas grid households that use alternative fuels like heating oil, liquid petroleum gas (LPG) or solid fuels like coal also face a unique set of challenges. Most off-grid households that use fossil fuels for heating are in rural areas — and rural households are more likely to be in fuel poverty, at risk of being unable to afford energy bills or living in cold homes.

If you use mains gas or electricity at home, you’re buying it from a regulated supplier which has responsibilities to treat you fairly and offer you support when you’re struggling. But if you’re buying a tank of oil or bottles of LPG, you’re largely on your own. People using these fuels have to grapple with fluctuating prices in an unregulated market — and the soaring costs of energy we’ve seen during the cost of living crisis have had extra consequences.

Volatile fuel costs leave off-grid households facing a pricing lottery

We’ve all experienced changes to the cost of energy in recent years, with many struggling with rocketing costs. But households using alternative fuels face a pricing lottery, where they can pay dramatically more for the same fuel if they’re unlucky enough to need to top up at a particularly expensive time.

This has been especially acute during the energy crisis, when oil prices in particular have been volatile. The House of Commons Library estimates that a family buying 1,000 litres of heating oil in March 2022 would have paid an extra £250 compared to if they had bought the same amount just a month earlier in February 2022. Unlike big energy suppliers, many individual households simply don’t have the resources to plan for and absorb sudden price changes.

The effect of price spikes is made even worse by the fact that off-gas grid households generally need to buy fuel in bulk, with many oil suppliers for example imposing minimum top-up amounts. This means households can be required to pay large sums upfront for their energy. If they can’t afford to pay these large amounts in one go, they can be left unable to buy any fuel to stay warm — like Emily, who came to Citizens Advice for help:

Emily lives with her partner and children in a rented house with an oil boiler. The house is old and Emily has to have the heating on regularly for it to stay warm, but she is being asked to pay hundreds of pounds upfront to top up her oil tank with her supplier’s minimum of 500 litres. The oil tank is now empty and Emily can’t afford to top it up, meaning the family doesn’t have any heating or hot water.

People who use alternative fuels can be locked out of support

When people like Emily who use alternative fuels face difficulties, they can often be left without any support from their suppliers. And even where forbearance is available, these customers often have far more limited support options than those who use mains gas and electricity.

Paul lives in a static caravan, which he heats using LPG. He has health problems and receives pension credit. Paul found out he had built up debt to his LPG supplier after the company cancelled his payment in error. Paul didn’t realise at the time because he has limited literacy and can’t read his bank statements. Now Paul’s gas supplier is refusing to deliver any fuel until he pays at least £1000 upfront, which he can’t afford to do. Paul has been left with no gas and is relying on electric heaters.

And it’s not just individual help from suppliers that can be difficult to access. Some people who use alternative fuels can also face extra barriers in accessing wider Government support with energy costs — for example, needing to apply for help rather than receiving support automatically.

What’s next for off-gas grid households?

At the moment, households who rely on alternative fuels like oil, LPG and coal are left to struggle with costs in an unregulated market. And the fuels these households have to use are also highly carbon-intensive.

Supporting these households to move onto low-carbon technologies like heat pumps is vital both to reaching net zero goals and helping people heat their homes in a secure and affordable way. In an era of high energy prices, it’s more important than ever that off-gas grid households can access protections and help when they need it.

Last year, the Government pushed back a proposed ban on installing new fossil fuel heating systems in off-gas grid homes in England to 2035. But off-grid households need support now to insulate their homes so they’re ready for heating systems like heat pumps — and to upgrade these heating systems sooner where possible.

Local Citizens Advice advisers have helped clients with issues with LPG suppliers even in new-build properties. We would expect to see future-proof low-carbon heating systems being installed in these new properties, rather than systems that trap customers in an unregulated market and will need to be upgraded in the near future. Inaction from policymakers could mean households that use alternative fuels get left behind in the transition to low-carbon technologies, and stay reliant on heating systems with volatile costs and lower protections.

Citizens Advice research shows that 2 in 5 homeowners (39%) who use oil, LPG or solid fuels for heating would be interested in installing a heat pump. But among off-grid homeowners who don’t want a heat pump, 38% said this was because they thought it wouldn’t be suitable for their property.

This shows that off-gas grid households need tailored and personalised advice to help them understand what’s right for their home. This could include exploring additional insulation to make their home warmer and help a heat pump run more efficiently, information on using heat pumps effectively, or in some cases exploring options for alternative affordable low-carbon heating systems.

Where people are interested in upgrading their heating system, we need better support to help people afford and successfully install a heat pump — including strong consumer protections to help households install new technologies with confidence.

People who are off the gas grid have spent yet another winter in the cold. We can’t wait another decade to support people to move to clean, secure and affordable heating.

If you use alternative fuels, you can use our website to find advice on paying for fuel.