Fuel distributors are being encouraged to not only add their own response to the consultation but also to encourage their customers to engage with it to ensure their needs are not overlooked.
The Alternative Clean Heating Consultation sets out plans to move most oil-heated homes towards heat pumps or heat networks. Industry analysis, however, warns that this approach risks imposing high costs and disruption on rural households while overlooking practical alternatives.
Although heat pumps are positioned as the default solution, the consultation does, for the first time, recognise renewable liquid fuels such as HVO. This creates a narrow but important opportunity for the sector to demonstrate that renewable liquid fuels offer a practical, affordable and immediate pathway to decarbonisation. By also encouraging their customers to engage with the consultation, distributors can ensure that rural consumers are represented and that government recognises the importance of choice, affordability and practicality in heating solutions.
A realistic pathway for rural customers
The liquid fuel industry is proposing the use of renewable liquid fuel blends that can be supplied through existing distribution networks and used in current oil boilers with only minor modifications.
This offers a low-disruption route to decarbonisation that leverages existing, strong customer relationships and established supply chains to maintain customer choice and avoid forcing households into unaffordable upgrades.
The consultation estimates heat pump installation costs at £16,900–£17,100, with running costs of £1,700–£1,750 per year. These figures do not include additional works such as insulation upgrades and are based on electricity prices lower than today’s capped rates. The industry suggests that, in contrast, renewable liquid fuels, will be a similar cost to heating oil and avoid the need for new systems.
A three-year industry demonstration project involving around 150 homes, has already proven that renewable liquid fuel blends can be distributed and used at scale. Led jointly by UKIFDA and OFTEC, the project showed that the transition could be achieved without significant changes to delivery infrastructure and without disruption and cost for the consumer.
Mobilising customers and communities
Through the Future Ready Fuel “Stand Up for Your Home Heating” campaign, distributors are being encouraged to inform customers about the consultation and urge them to respond. Industry trade bodies believe that strong consumer participation will be essential to demonstrate the lived reality of rural households and ensure a choice of routes to decarbonisation.
Ken Cronin, CEO UKIFDA says: “We’re asking all distributors to reach out to their customers, explain why this consultation matters and encourage them to join the Future Ready Fuel campaign via its website.”
Acknowledging the opportunity afforded by the consultation to shape policy and protect consumer choice. Ken emphasises the need for a strong response: “We can deliver a decarbonisation solution that works, it can start immediately, has our customers’ confidence, and respects consumer affordability and practicality. We need to ensure our voices and those of our customers are heard”
Act before the deadline
Open now, the Alternative Clean Heating Consultation closes on 10 February 2026, and responses from distributors, businesses and households will all carry weight.
Further information and response guidance is available at: www.futurereadyfuel.info/consultation