Tynwald approves 27.5% gas bill increase to meet cost of global rises

The gas consumers will see bills rise by up to £40 from next year

Manx Gas customers are facing a hike of 27.5% in bills during the winter after Tynwald voted to raise tariffs.

The island's energy regulator had said it had no choice but to recommend the 2.1p per unit increase in response to the soaring cost of wholesale gas.

While politicians backed the change, some raised concerns over being forced into the decision at short notice.

In response, Treasury Minister David Ashford promised £500,000 in support to help those on low to middle incomes.

Unveiling a package of measures during the debate, Mr Ashford said those who qualify for the £350 winter fuel bonus will get an extra £100 in January.

That sum will also be available to people on certain other earnings-related benefits.

Variable payments of between £25 to £75 for those "just above income support levels" would be made "depending on a person's circumstances and income", Mr Ashford added.

A further £500,000 in support could be brought forward in March "depending on how home-heating costs are affected over the coming months", a treasury spokesman confirmed.

Customer protection

As a result of the tariff increases, bills for about 20,000 gas customers are set to rise by as much as £40 from the start of 2022, however the company has promised to review prices in six months' time should markets change.

Claire Christian MHK, who unsuccessfully called for a delay in the vote, argued the island's monopoly gas supplier "should have done better to protect" consumers, while Tim Glover MHK said he was "uncomfortable" politicians had been asked to support the rise without prior knowledge of the government's planned support.

The recommendation was brought forward on behalf of the Communications and Utilities Regulatory Authority by Chris Thomas MHK, who said the regulator "had to balance the protection of gas consumers with maintaining a stable, uninterrupted gas supply".