[Engine] Fuel filter heater issue?

[Danpercy]

Evening all, 

Hope everyone is well!

I’m new on here so please go easy if I’m asking a silly question. 

I require some guidance please. 

I have just purchased (from my father) 2007 1.6 HDI berlingo. 
Been fully serviced and well cared for for last ten years and never missed a beat, until I become the owner! 

So….thought I’d give it some TLC, check oil water etc. removed the dipstick only for the whole oil tut and dipstick to come out of the engine together. Think I can solve this.  Sort term I put in back in the hole and tied into position. 

Van started Monday am for 10 seconds or so then died. 
Has been starting in and off all week and runs ok but sometimes dies shortly after
Starting. But will start again. Investigated today and found air hoses loose and not fitting well together, don’t seem to fit that well but got them all connected. Thought I’d cracked it! 
However after running for several minutes I notice smoke coming from what I believe to be the fuel filter heater? Connection did not remove well and looks pretty rough like it’s shorting out. Pics attached. 
Any how sorry for long message any thoughts / help welcome ? 

Many thanks,

Dan