Isle of Man gas prices to fall by 16% after regulator's review

Private firm Isle of Man Energy is the island's monopoly gas supplier

Gas customers on the Isle of Man will see the cost of bills fall by 16% next month after a regulator's price review.

Monopoly gas supplier Isle of Man Energy's tariffs are set to be slashed from 16.67p per unit to 13.98p from 1 March.

The Communication and Utilities Regulatory Authority said the move was justified after wholesale gas prices had fallen across global markets.

Tariffs would continue to be monitored and "carefully managed", it added.

The regulator's review had been triggered last month after forward purchase prices for natural gas had fallen by more than 10%.

It had previously cut bills by a quarter in November after a similar review.

Publishing the outcome of its investigation, the body said it was trying to manage tariffs to be "fair and representative of the cost of the service", while avoiding large price change.

The 16% cut to Isle of Man Energy's standard central heating tariff will come into force in March and remain in place until the end of the year.

But a scheduled review is still due to take place in June, when the monopoly firm's projected return will be reviewed to see if tariffs need to be updated, the regulator said.