Gas prices in the island will buck the trend in the UK, where most consumers will see bills drop.

In contrast, Manx Gas says its tariffs for 2020 will remain frozen at the current levels for those who were on the A or I bands.

However, people who were previously on any other band will see an increase in their tariff as the controversial banded standing charge has been dropped from January 1.

The company’s tariffs were announced in a notice in the Isle of Man Courier as remaining at the 7.64p per unit for the all island A band with the standing charge being 16.89p per day for any household having a gas line.

This means that those who were previously on the A or I bands will remain on the same standing charge and tariff.

Customers who were on bands B, C, D, E, F, G or H, they will see an increase in their tariff of 1.4p per unit which is offset by the decrease in their standing charge. The highest banding charge had been 218p per day.

However, under the new system, some consumers could end up paying slightly more, depending on their annual usage.

Meanwhile, customers in the UK and across most of Europe are set for a decrease in prices. The Guardian newspaper reported that prices in the UK had fallen to ’lows not seen in a decade’.

The paper said: ’The market price for gas has plummeted across Europe as a record number of cargoes from the US, Russia and Qatar have flooded into the continent.

’In the UK the market price for gas hit 10-year lows of 24.75p per therm in September, compared with an average price of 55.63p in the same month last year as imports of liquified natural gas (LNG) reached new highs.’

However, in the island, the tariff has either remained unchanged or risen for customers since 2017.

Ian Plenderleith, group managing director of Islands Energy Group, which owns Manx Gas, said: ’Manx Gas is a very small gas company and to avoid high winter prices we purchase gas well in advance of winter in order to protect customers from a winter price increase - we are not buying gas in the market every day like the large UK gas companies.

’This has proved successful as Manx Gas’s companies have been protected from gas price volatility; we have not had a price increase since June 2017 and current tariffs are 7% lower than in January 2015.

’It is correct that natural gas prices are currently very low for the time of year and should they remain this way prices for customers will fall.’

The future relationship between Manx Gas and the island is currently being worked out as the company and the government have been in discussions about a new agreement after a Tynwald report said that the company’s profits were ’too high’.

Chief Minister Howard Quayle then said customers ’have to get a fair and equitable return on the money that they are giving to Manx Gas for the services that they receive’.

It is understood that the government will consider new legislation for gas price regulations if it is unable to reach an agreement with Manx Gas. Mr Quayle has mentioned gas regulation as something his government wants to achieve in the next two years, see page six.

Caption

Caption