Isle of Man gas prices to be regulated for first time

Isle of Man gas prices are to be regulated for the first time "after years of consumer concern", the Manx government has announced.

A spokesman said the four-year arrangement will commit Manx Gas to profits "below their previous target".

Last year Chief Minister Allan Bell ordered the Office of Fair Trading (OFT) to conduct a price inquiry.

Manx Gas, the Isle of Man's sole gas provider, said the terms of the new agreement were "challenging but fair".

The voluntary deal has been coordinated by the island's branch of the OFT in association with the department of economic development and Manx Gas.

OFT Chairman David Quirk said the move will mean "a better deal for customers" and compliance will be "rigorously monitored".

"We estimate that it will give a saving to the island's consumers of over £2m over that [four year] period, compared to the previous system," he continued.