Cost of living: Oil-buyer scheme aims to help the 'fuel poor'

Man filling oil tank with domestic heating keroseneImage source, PaulMaguire/Getty Images

Half a million homes in Northern Ireland are dependent on oil for heating. That's 68% of the population, mostly in rural areas.

The government has announced a payment of £100 to help - it will come in the form of a credit to electricity bills.

But there is another way for oil users to cut costs: It's called the Northern Ireland Oil Buying Network.

It negotiates discount prices with suppliers on behalf of its members on a weekly basis.

Image source, Getty Images
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An oil-buyer scheme can help with the shock of higher energy bills

The network is run by the NI Housing Executive's (NIHE) Energy Advice Service.

Robert Clements, NIHE's head of Sustainable Development, said:

"The scheme is open to all householders across Northern Ireland, including those who rent or own their home and to housing association and Housing Executive tenants.

"We are trying to help people who buy 200, 300 or 400 litres at a time to get better value.

"According to our latest data over the last month, if you buy 200 litres you can save anything from £10 to as much as £21."

Mr Clements says the popularity of the scheme is growing.

"Over the last 12 months our membership has increased by around 32%, so householders can definitely see the value in joining up," he said.

How the scheme works

  • To register, email your first name and postcode to oilbuyingclubs@nihe.gov.uk, text 07823 535 178 or call 0800 111 4455

  • NIOBN will check that you have a registered supplier for your postcode

  • All members receive a weekly request for a potential order by email, text or, in exceptional circumstances, by phone

  • The scheme will then negotiate the best price

  • The NIOBN will send interested members the details of the supplier's discounted cost per litre, a discount code and a deadline order date

  • Members place their own order by calling the supplier, using the code

Peter Dunne from Ballykelly in County Londonderry has been taking part in the scheme for two years.

"It's extremely convenient," he said. "They contact you approximately every two weeks and you go back and ask for however many litres you need."

Mr Dunne said he was averaging a saving of £27 per 200 litres in recent months.

Does he find the process complicated?

"Absolutely not. I typically use a text message. It's as easy as ordering oil for yourself," he says.

"It's free and you can make savings on what is an essential for most of us," Mr Dunne adds.

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The oil network currently has around 6,800 members

Gemma Cowles of the Energy Advice Service said the network currently had about 6,800 members and 22 registered suppliers.

The organisers compile a registered supplier index every day to gauge the best prices.

"It can work out better to buy smaller quantities more often," she said.

The oil-buying scheme is open to all customers but is particularly intended to help those who struggle with their bills.

"We're here for the vulnerable. We're here for the fuel poor," said Ms Cowles.

What other help is available?

Another scheme to help people with the cost of heating over winter is the winter fuel payment.

If you were born on or before 25 September 1956 you could get between £250 and £600 to help you pay your heating bills, external this winter.

The Northern Ireland Oil Federation has also partnered with PayPoint to introduce a pre-payment scheme for home heating oil., external

The scheme allows customers to make regular payments throughout the year rather than pay a lump sum at the time of delivery.

Those participating in the scheme will receive a swipe card which can be used to make payments towards home heating oil at participating shops.

Some councils in Northern Ireland also run an oil stamp scheme which allows customers to buy £5 oil stamps from local retailers.

The collected stamps can then be used for payment or part-payment of oil from participating suppliers.

Participating councils include: