Deal to give Manx Gas customers rebate next year agreed by government

Customers will receive a rebate of at least £58 next year

Manx Gas customers are set to receive a rebate on bills next year after the government reached a deal with the monopoly provider.

Domestic and commercial users are set to be repaid at least £58 in February.

It come after the government opted to reduce the firm's infrastructure payments by £1.4m, on the condition the savings are passed on to customers.

Cabinet Office Minister Kate Lord-Brennan said it was welcome news given bills were due to rise 27.5%.

Manx Gas CEO Jo Cox said it was important the funds went "directly" to those impacted at a time of "unprecedented and ongoing volatility" in global markets.

In October, Tynwald members agreed to allow for the a gas tariff increase so the company could meet the rising cost of wholesale gas.

The company has since requested another review of its charges as its profits continue to fall.

Adjusted loans

Repayments to gas customers were first raised during discussions over a new voluntary regulatory deal with Manx Gas, but talks collapsed earlier this year when politicians voted in favour of the creation of a statutory regulator.

The rebate has now been made possible after the government agreed to adjust loans the gas provider holds with state-owned electricity and water authority Manx Utilities.

Accounts held by the Isle of Man government will not receive the rebate.

The announcement follows a separate pledge by Treasury to pay an additional £0.5m in winter fuel payments to support those affected by the increased gas tariffs.