Manx Gas seeks new tariff increase as global costs see profits fall

Manx Gas said it cannot continue to lose profits and invest in the island's infrastructure

Energy regulators on the Isle of Man have been asked to approve another rise in gas tariffs as global costs remain at an "unprecedented high".

Manx Gas has applied for a further increase to the 2.1% uplift agreed to by Tynwald in October.

It comes after the company's profits fell below the 10% margin it claims is needed to invest in infrastructure and continue operation.

CEO Jox Cox said risings costs in world markets showed "no signs of dropping".

'Loss of profit'

About 20,000 customers were hit with a 27.5% hike in bills, after the Communications and Utilities Regulatory Authority (CURA) recommended Tynwald lift tariffs in October to keep the monopoly provider afloat.

The firm has now asked the regulator to review the cap again as it said it "cannot absorb the long-term loss of profit" caused by natural gas prices remaining at an "unprecedented high".

In a statement, Ms Cox set out to reassure customers the company was "acutely aware" of the impact rises have, and asked anyone struggling to contact Manx Gas.

CURA is reviewing the firm's latest submission along with other economic data, with any recommendations to be published "in due course".

The regulator said one of its "primary aims was to ensure the public gas supplier remains solvent", not to ensure profits or dividends are paid.

It would be "mindful to strike a balance between the needs of consumers, Manx Gas and the wider public interest", CURA added.