Isle of Man gas price freeze proposed by regulator

A temporary cap on gas prices could introduced, according to the Isle of Man's regulatory authority.

It follows the failure of the government and Manx Gas to reach an agreement over the voluntary regulation of the sector.

The Communications and Utilities Regulatory Authority has suggested a temporary price freeze based on tariffs that were in place in January 2020.

The move would protect consumers from sudden price hikes, the regulator said.

A previous five-year voluntary agreement, which capped the company's profits at just under 10%, was signed in 2015.

A report published in 2019 found profits allowed under that agreement were too high, and the government triggered a six-month break clause in the contract last June.

Although the heads of terms for a new voluntary agreement were approved by Tynwald in November, the full details of the deal could not agreed with the company.

The proposals would "protect both consumers and the economy from any excessive pricing", a spokesman for the regulatory body said.

"While there is nothing to suggest that this would happen, the Authority cannot ignore the fact that, because of Manx Gas's position as a monopoly provider, the ability and incentive to increase prices does exist," he said.

The cap on prices would be the "first step in putting in place a fair, transparent, and sustainable regulatory regime", he added.

Under the current proposals, the temporary price freeze would remain in place until a more detailed regulatory framework to include price parameters could be drafted and approved.

A consultation on the proposed prize freeze is available online until 15 April.

Why not follow BBC Isle of Man on Facebook and Twitter? You can also send story ideas to [email protected]