The new look Tynwald will be asked to approve a gas increase of 27% for mains gas and LPG heating tariffs when it meets later this month.
A review of pricing by the Communications and Utilities Regulatory Authority (CURA) – the island’s
gas market regulator was triggered by the unprecedented increase in gas prices across
the globe in recent weeks.
If the cap increase is approved by Tynwald, Manx Gas would be able to increase charges to
consumers by up to 2.1 pence per unit of gas. Ofgem in the UK has recently approved a 28% price
increase, as has the Northern Ireland Utilities Regulator. Further adjustments to the price cap may be necessary, including a reduction should the wholesale
cost of gas decrease.
Because of the increase in price to suppliers, Manx Gas is currently selling gas at less than it is paying for it.
A statement said: ‘CURA is fully aware of the impact that this increase will have on consumers, especially on vulnerable customers, but the price increases are unfortunate, but unavoidable. CURA must
balance the interests of consumers with the need to ensure security of gas supplies and the
ongoing operation and maintenance of the Island’s gas network. There is support available for
vulnerable customers and those who may struggle with increased energy costs at http://www.cura.im.’
What This Means for Customers
The proposed increase of 27.5% would mean a price increase of 2.1p per unit. If it is approved, the new prices would come into force in mid October.
The proposed increase will put pressure on Tynwald to either seek a different solution or increase the winter fuel payments paid to the island’s vulnerable residents.
Residents are advised to take note of their meter readings at that time and vulnerable customers are urged to contact Manx Gas (or the Authority or other relevant gov departments) proactively to look for help and support.