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Connecticut consumer agency urges heating oil buyers to sign prepaid contracts by Oct. 31

The Department of Consumer Protection said homeowners locking in a fuel rate for the winter should understand contract terms, security requirements and cancellation penalties before signing.

Connecticut consumers who plan to prepay for home heating oil this fall should negotiate and sign those contracts by Oct. 31, the state Department of Consumer Protection said Tuesday.

The department said homeowners are not required to pre-buy oil, but that many dealers offer long-term prepaid contracts that lock in a rate and shield customers from price spikes. Dealers themselves can have trouble securing supply when markets move, the agency said.

The department, which regulates fuel sales and takes complaints about oil and propane, said it does not set or regulate fuel prices. It reviews alleged contract violations under the Connecticut Unfair Trade Practices Act.

Before signing, the agency said, consumers should know their tank size and how much oil they typically use in a year, and should understand whether they are agreeing to a fixed price, a cap price that can fall if the market drops, or a pay-as-you-go plan that charges the market rate at each delivery.

Under state rules described by the department, dealers that collect prepaid money must back their contracts either with future supply contracts covering 80% of their commitments or with a surety bond covering 50% of consumer funds. Customers should also get written confirmation that credit for paid but undelivered fuel will be refunded within 30 days of a contract's expiration, the agency said.

Consumers were also urged to check contracts for exit fees, automatic renewal clauses and terms that void a fixed rate, such as a missed payment, and to ask about surcharges for weekend or emergency deliveries.

Customers with a dispute should keep records of contracts, missed deliveries and communications with the company, and may file a complaint with the department if the business does not resolve the issue, the agency said.

This brief was drafted by AI from a public agency press release and published by The New England Signal. Why we use AI for stories like this one.

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