Warmer than average weather has been blamed for a planned increase in gas prices from next month.
The total impact of the tariff rises on the average central heating customer will be 6.53 pence a day. Manx Gas says this equates to just over £22 a year.
Tony Nicholls, group managing director of parent company International Energy Group, said:’The business has financially underperformed against the average of the acceptable returns range established in the March 2008 investigation into gas prices.
‘This underperformance has been due to below average gas consumption as a direct result of warmer than average weather patterns that have been experienced in the Isle of Man.
‘The business has struggled to achieve the necessary levels of output over recent years and this small price increase will go some way to returning the business towards the average of the acceptable returns and, importantly, ensure that the business remains well placed to continue to provide the necessary investment in infrastructure and operations to deliver a quality and reliable service to our customers.’
From September 12 there will be a 2.9 per cent or 0.221p per unit increase in all [variable] tariffs, which equates to 6.05 pence a day for an average user.
There will also be a 3 per cent or 0.48 pence a day increase in the standing charge which is in line with inflation, the July Retail Prices Index, at 3 per cent, and covers the forecast increase in the cost of providing connections to the gas supply.