Isle of Man gas prices may fall as regulator reviews market

The forward purchase price of gas in 2023 is lower than first forecast

Gas bills on the Isle of Man could fall next month after a review of prices, an energy regulator has said.

The Communication and Utilities Regulatory Authority (CURA) said a cut may be needed as the cost of forward purchasing wholesale gas had reduced.

The regulator last slashed tariffs by 25% in November to 16.67p per unit after changes in global energy markets.

Jo Cox, chief executive of gas supplier Isle of Man Energy, said a price cut would be "great news for customers".

The monopoly provider was in "regular dialogue" with CURA about the changes, which "we expect will trigger a price reduction", she added.

Wholesale costs

Under the island's gas regulations, a review of tariffs can be undertaken if there is a fall or rise of 10% or more in prices.

CURA said its latest investigation has been triggered by a fall in the current cost of buying gas for the future, which has been much lower in January than it was in December.

Market indicators suggested that trend would continue for a "a sustained period", although prices still remained "volatile", the authority added.

In setting any new tariffs, CURA said it needed to balance price stability with the potential for Isle of Man Energy to profit from maintaining existing rates while global prices had fallen.

The review would be completed "as quickly as possible", the regulator added.