Regulator to consult on Isle of Man gas tariffs

CURA is set to consult on potential changes to the regulatory framework for gas tariffs

Steps are being explored to tighten regulations for customers consuming large amounts of gas, the Isle of Man's energy regulator has confirmed.

Domestic gas supplied on the island has been regulated by the Communications and Utilities Regulatory Authority (Cura) since 2021.

The watchdog said it had noticed some Isle of Man Energy customers, typically large commercial consumers, were facing "higher than expected tariffs".

A consultation would therefore be held in early 2025, with the findings then published along with regulations for Tynwald to consider, it added.

The move follows concerns voiced by a resident of sheltered housing in Ramsey, who claimed those living on the complex were being "ripped off" as the managing body was classed as a commercial customer.

Under current legislation, Cura sets the parameters for the amount of profit the island's monopoly gas provider make from its tariffs and carries out two set reviews each ear.

There are two categories of customer, namely regulated tariff customers, which fall under the legislation, and special agreement customers, which are governed by more light touch regulation.

'Potential remedies'

Cura said when the current framework was introduced the firm argued customers consuming a large amount of gas would be protected by competition from other fuel sources and so "did not need to be regulated as stringently".

But the authority said there had since been a trend of larger consumers being subject to tariffs that were "higher than expected" over a sustained period of time.

The consultation process would "explore potential remedies further" so that "like in the regulated tariff market, tariffs are fair for all parties", it said.

The watchdog confirmed it would be taking the first steps "in the coming weeks" and intended to complete its work in the first half of 2025.