Isle of Man: Gas market price controls planned by regulator

Proposals for price controls in the gas market which would limit the profit of Manx Gas, the Isle of Man's monopoly provider, have been put out for consultation.

The Communications and Utilities Regulatory Authority (CURA) said the price model was based on supply costs.

The plan also includes fixed bills for gas customers and future regulation.

A temporary price freeze was put in place in May to protect customers from sudden price hikes.

Concern over the way tariffs were set can be traced back to a voluntary agreement signed in 2015 between the government and Manx Gas, which allowed a 9.99% return on capital.

The deal sparked customer protests and led to an independent report published in 2019 which found the company's profits were too high.

Talks then began over a new voluntary deal, but they broke down earlier this year and Tynwald voted to impose regulation on Manx Gas.

Campaigner Barry Murphy welcomed the new price plan after a time of "difficulty and anxiety" for customers.

He said: "gas customers will be treated fairly and with an equal level of fairness, and if wholesale prices level off or better still decrease, we will see lower gas bills through the letterboxes."

If approved the price plan would last four years.

The consultation is available to respond to online until 7 September.

Why not follow BBC Isle of Man on Facebook and Twitter? You can also send story ideas to [email protected]