In December 2020, the Communications and Utilities Regulatory Authority Order 2020 was approved by Tynwald. This had the effect of establishing the Communications Commission as the Communications and Utilities Regulatory Authority.
The Gas Regulation (Amendment) Act 2021 progressed at the same time through the Legislative Branches and introduced new powers into the Gas Regulation Act 1995 for CURA to set parameters which a public gas provider must adhere to when setting tariffs.
CURA is also empowered to set conditions in connection with the parameters set.
In May 2021, Gas (Tariff Fixing) Regulations 2021 were approved by Tynwald. The Regulations were introduced following a consultation where CURA provided the context to and gave initial indications of its regulatory goals. These Regulations put in place a tariff cap with a view to protecting consumers from potential predatory price increases in the period whilst the detailed regulatory controls were being introduced.
Due to the unprecedented wholesale gas commodity prices IOM Energy Limited requested a tariff review in August 2021. Having taken into account the relevant factors, such as market conditions, forward purchases, forward market curves, and the likely impact on all stakeholders, it was determined that an increase of 2.1p/unit would be appropriate. As a result, the Gas (Tariff Fixing)(Amendment) Regulations 2021 were approved at the October 2021 sitting of Tynwald.
The Gas (Tariff Fixing)(Parameters) Regulations 2022 brought into force a new regulatory framework that came into effect from the 1st of April 2022. These Regulations will establish a framework that is fair, transparent, and non-discriminatory. The framework being introduced will balance the interests of all stakeholders, which have been identified as gas consumers, IOM Energy and the wider public interest. These Regulations are important for tariff stability and fairness for gas consumers and they also introduce certainty for IOM Energy which encourages investment in the gas network. The Regulations will remain in force for a period of five years.
The Public Consultation for the gas regulations can be located on the consultation hub. Click this link to visit the consultation hub and view the gas regulation consultation.
Our focus for future regulation is to consult on and apply new primary legislation in the form of the Gas (Economic Regulation) Bill.