Rise of 27.5% to Isle of Man gas prices proposed

CURA said it reviewed tariffs after wholesale gas prices quadrupled

Gas prices on the Isle of Man could rise by 27.5% after the island's energy regulator proposed an "unfortunate but unavoidable" increase to tariff caps.

The Communications and Utilities Regulatory Authority (CURA) has asked Tynwald to approve the 2.1p per unit increase due to an "unprecedented rise in global prices".

A CURA review found gas now costs Manx Gas more than it can charge customers.

The change could see some pay as much as £40 more on bills over the winter.

'Global problem'

CURA said increasing maximum cap on tariffs was necessary as the cost of wholesale gas had quadrupled in price.

It added that the move was in line with neighbouring jurisdictions.

"What is being experienced at the moment is a global problem and there is unfortunately little that can be done to alleviate the impact it will have in the Isle of Man," a spokesman said.

If the increase is approved by Tynwald, customers see their bills increase by between £20 to £44 more this winter, depending on how much gas they use.

The review was carried out after Manx Gas, the island's monopoly gas provider, asked for an increase in August in response to the rising wholesale prices.

CURA has stressed the review only includes parts of the tariffs which cover the price of gas, not the cost of on-island supply.

The body is still in the process of drafting up long-term regulations for the island's gas market.

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