Business
Gas Price Drop Day
CURA recently told Isle of Man Energy to cut its tariff by 25%.
We almost forgot, did you almost forget? Well today is the day that gas prices on the island fall by 25%.
The Communications and Utilities Regulatory Authority recently reviewed tariffs given the drop in the global price of gas and told Isle of Man Energy (the artists formerly known as Manx Gas) to cut their tariffs.
This means that prices will remain at 16.67p/unit until the end of the year, when the next review is due to be held. This new review is part of the framework Tynwald agreed to when it washed its hands of any responsibility last year, which sees two reviews a year, unless there is a swing in wholesale prices, in which case CURA can review prices again.
However, the cost of gas is still 118% higher than it was in September 2021, when tariffs were at 7.64p per unit.
When CURA’s decision was announced, Island Energy Group CEO Jo Cox said: ‘The extreme volatility witnessed in the worldwide energy markets has resulted in continuing instability in pricing. In the summer we saw steep rises in commodity costs, which led to a price increase in September. However, since the middle of that month, the price has fallen significantly. I’m delighted to say that Isle of Man Energy can, as I promised, decrease the price of gas.
‘We have provided our accounts to CURA who are content for us to proceed with a drop in our tariff. This is great news for our customers in the Isle of Man where we know that people are very concerned about coping with the cost of living this winter and to be able to have lower heating costs is welcome news.’
However, while gas prices has dropped, the taxpayer owned Manx Utilities, which is in receipt of a loan from taxpayers, which will be repaid by customers (taxpayers), has said the cost of electricity will remain fixed until at least April. This was first reported by Business 365.
