Manx Gas criticised for 'flawed' banded system

In 2015 Manx Gas was forced to cut bills by 3.5% following a review

A banded system for gas bills has been branded "flawed" by customers who claim payments have increased.

Manx Gas introduced a banded pricing system in January 2016 with the lowest band being charged 16p a day and the highest £2.13 a day.

Hundreds of customers have joined a campaign, with dozens claiming they pay more in charges than for gas used.

Manx Gas, the sole gas provider, said summer bills may be "slightly higher" but they should be lower in the winter.

Barry Murphy is calling for variable standing charges to be replaced with an "affordable flat-rate"

Barry Murphy, from the Manx Gas Standing Charges Facebook group, said the "flawed and immoral" pricing system is causing a "massive problem" for island residents.

Mr Murphy, who is the administrator of the Facebook group, said: "Our standing charge has gone up to about 90 pence a day - any benefit we might get from lower wholesale gas prices has been totally wiped out.

"My standing charge is about £500 a year before I've even used any gas - that is simply not acceptable."

In 2015 Manx Gas was forced to cut bills by 3.5% following a review by the Isle of Man Office of Fair Trading

Its pricing system places each customer into a "consumption band" ranging from A, for those who used up to 5,000 kWh of gas a year, through to I, for those who use more than 50,000 kWh.

Manx Gas said banded standing charges have not increased the revenue it receives

Mr Murphy said there should be one "affordable flat-rate" for domestic customers.

"On the island we have no choice of suppliers therefore we should be given a choice of tariffs.

"We are moving into the winter and people who are struggling to pay the basic standing charge are too frightened to put their heating on."

Manx Gas said it is aware of the concerns on social media and that it is "happy to help" any customers who are worried about fuel costs.

"The banded standing charges have not increased the revenue Manx Gas receives.

"Over the course of a typical year, the majority of customers will have seen little or no change, some will have seen a small increase and some will have seen a small decrease," it said.