Manx Gas bills to soar again as tariffs increase a further 58%

An average gas user's annual bill will increase by more than £600 under the hike

Isle of Man gas customers will see bills soar by 58% from Friday due to "extremely high wholesale prices", the island's energy regulator has said.

The rise will see domestic Manx Gas customers pay an average of more than £600 extra over the next 12 months.

It follows a 27.5% hike introduced in December, and will coincide with a 30% increase in electricity bills.

The Communications and Utilities Regulatory Authority confirmed the rise will come into force on 1 April.

Under the move, heating tariffs will increase by 5.7p per unit to 15.4p.

Regulator chief executive officer Ivan Kiely acknowledged it was an "extremely worrying time for many gas customers", but said the rise had been driven by the current volatile global gas market.

An expected dip in gas consumption between April and September would help reduce the impact on bills, he added.

The monopoly provider's CEO Jo Cox said the increase could not be avoided as gas costs were at "unprecedented levels".

'Cost of living crisis'

In response to the hike, the government has announced £2.8m of support in the form of two new "one-off" payments, which will be made available for a six-month period to help those in a vulnerable financial position.

A £300 Energy Support Payment is due to be paid automatically from 4 April to those receiving any income-related benefits, with those who earn "marginally above" income support levels also eligible to claim a proportion of the sum, benefiting about 3,500 households.

More than 6,000 families receiving child benefit will also be eligible for a £300 Family Support Payment from May, paid on a sliding scale to those with household incomes of between £50,000 and £80,000.

On top of that, an extra £50 will be paid to families with two children, with £100 available for those with at least three.

Chief Minister Alfred Cannan said it was the first in a "range of responses" being planned by his government in response to the current "cost of living crisis".

The latest tariff increases mark the first time Manx Gas will set prices under a new regulatory framework, which links tariffs to wholesale costs.

Under that framework, which would see bills reduce when commodity prices drop, the regulator will assess the market as well as Manx Gas's operational and investment needs before a further tariff review in July.