Manx Gas cuts tariff which will see bills drop by 3.5%

Around 24,500 customers will see a reduction in their gas bills

An energy firm has agreed to cut gas bills by 3.5% following a review of its profits by the Isle of Man Office of Fair Trading (OFT).

The OFT regularly reviews Manx Gas' profits under an agreement to monitor progress against profitability.

The tariff reduction, which will benefit 24,500 customers from 1 January 2016, comes after both parties agreed the company needs to reduce its prices.

The average customer will save around £22 on their annual bill.

OFT Chairman David Quirk MHK said the Regulatory Agreement was designed to "benefit consumers".

"Having fixed Manx Gas profits at a fair level, consumers rather than shareholders will benefit from falling energy prices on the international markets," he said.

Manx Gas managing director Tony Nicholls said he was "delighted" to be making the announcement.