Regulator review recommends 2.8% gas price drop

The new tariffs will come into force from 1 July

Gas prices are set to be cut by 2.8% on the Isle of Man following a review of tariffs by the sector's regulator.

The Communications and Utilities Regulatory Authority (CURA) made the recommendation as part of its twice-yearly review.

The evaluation found that demand for the year so far had been higher than anticipated and there was a "risk of an over-recovery" by monopoly gas supplier Isle of Man Energy.

Jo Cox, chief executive of its parent company Islands Energy Group, said the cut would "hopefully help households who have struggled with the cost-of-living crisis".

Profits limited

The authority said it was "satisfied" the assumptions made by Isle of Man Energy as part of the process were "reasonable" reflected up-to-date information.

It added that the higher than expected demand meant the "overall cost of operating the network" was "more than covered by current tariff levels".

Under the regulations established by Tynwald, profits made by Isle of Man Energy have been limited.

The reduction will equate to a 0.3p drop in the per unit cost to customers from 1 July, which is currently set at 11.65p per kWh.

Ms Cox added: "We have provided our accounts to CURA who are happy for us to proceed with a drop in our tariffs.

"As the second price decrease this year, this is excellent news for our customers in the Isle of Man and will hopefully help households who have struggled with the cost-of-living crisis in recent years.”

The next tariff review is set to be carried out in November 2024, with any update to tariffs to be implemented in January 2025.