News Release: New Gas Tariffs Introduced Under New Gas Regulation
Published On:Tuesday, March 29, 2022
On 1st April Manx Gas will be introducing new gas tariffs.
These tariffs have been carefully reviewed by the Communications and Utilities Regulatory Authority (the Authority) which has ensured that Manx Gas is meeting its new legal obligations to charge a price for its gas that reflects the cost of supplying it.
This results in a new tariff that is around 58% higher than the one currently in place.
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.
The new tariffs that will come into effect on 1st April are:
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.
There is information available on our website to help consumers through this period; this includes answers to some Frequently Asked Questions and also some energy saving tips to help cut down on bills.
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.”