Manx Gas and the Communications and Utilities Regulatory Authority have announced an agreed 58% price increase to gas bills.
The increase kicks in on Friday and comes less than two weeks since Tynwald members voted to absolve themselves of responsibility for setting tariffs.
A Cure statement said: ‘The new framework ensures Manx Gas can only recover its costs plus a fair return. This means that when the wholesale cost of gas is low, tariffs will be low. When wholesale gas prices are high, as is the case now, tariffs will be high.’
Chief Executive Officer of the Authority, Ivan Kiely commented: ‘Whilst these tariffs are high, these high levels are being driven by the current extremely high wholesale gas prices. We have written into the legislation the need to review tariffs twice a year, in January and July, and when the global gas markets stabilise tariffs will come down in a timely manner.
‘Due to the way the billing cycles work, customers will likely not see the full impact of the increases for a number of weeks, I would also encourage households to submit a meter reading as soon as possible to ensure that they are billed accurately. As we are now moving into the warmer spring/summer months, gas usage should start to reduce for most households which will help reduce the impact of this change.
‘I know this will be an extremely worrying time for many gas consumers, but please do reach out if you need to. You can contact Manx Gas to discuss setting up a payment plan and there is also budgeting help available from the Office of Fair Trading for those who need it. The confidential phone number is 686510.’