Tynwald has approved new regulations that effectively put a freeze on Manx Gas tariffs.

The Communications and Utilities Regulatory Authority can now put a temporary freeze on Manx Gas tariffs, with a view for more long-term regulations being approved as statutory regulation takes effect.

But it still appears unclear how and when Manx Gas customers will receive much talked-about rebates.

Policy and Reform Minister Ray Harmer brought forward the regulations for approval last week, after Tynwald members voted to bring in statutory regulation of the gas sector earlier this year.

’The regulations are needed to protect Manx customers,’ said Mr Harmer.

The regulations caps tariffs at the levels as they currently apply, pending a wider scale review.

The minister said: ’This is a simple measure but one that I believe is important. Without them, there is very little to constrain Manx Gas in terms of setting its tariff and that is a scenario I feel we cannot ignore.’

He said it was the ’first step’ on putting a robust regulatory framework in place.

’We have really only started the starting gun. Last June we pressed the button for this to happen. Now we can really go forward.’

Further regulations would be brought in later in the year, he said.

Rob Callister (Onchan) was keen to see those steps taken, particularly to bring down prices, rather than just freeze.

’This is a great first step but we need some action,’ he said.

Tynwald gave the regulations unanimous approval.

Prior to the regulations being approved, Mr Harmer’s predecessor as minister, Chris Thomas (Douglas Central) had tabled a motion that called on Tynwald to recognise the petition organised by Barry Murphy of the IoM Gas Consumers Working Group - with more than 2,000 signatures - requesting that Tynwald insist the Cabinet Office imposes regulation on Manx Gas immediately.

The petition also called for Treasury to pay the funds/rebates it said were promised to customers for 2020 and 2021, averaging £100 per household per year, but Tynwald was told that could not happen in the manner suggested.

However, an amendment brought by Mr Harmer acknowledged the government plan to offer Manx Gas a discount on charges for using the natural gas network and that those savings would have to be passed on to customers.

Mr Thomas said the rebate offer had been part of discussions when a voluntary regulatory agreement was being sought.

’The vast majority of gas customers, of whom there are a great many on the island - 20,000 it is estimated - have been left very disappointed because they heard that rebates of £100 for 2020 and £100 for 2021 were on the cards.’

He said most customers did not understand the nuanced differences between a voluntary gas regulation agreement and statutory regulation. Mr Harmer said Tynwald had acted ’expeditiously’ to move towards statutory regulation after it became clear a voluntary agreement with Manx Gas would not happen.

His amendment removed reference to the Treasury repaying refunds and rebates as ’that is not in the realm of either the possible or the feasible’.

’People are misunderstanding that there is a call on Treasury to rebate the £100 a year and I think that would be misleading,’ said the minister.

Lawrie Hooper (LibVannin, Ramsey) said no promise had been made to pay a rebate.

’There was a deal on the table that would have involved the rebate,’ he said.

’Tynwald very clearly said "no thanks, we would rather go down the statutory route". It is a little bit disingenuous to try and pretend that this was somehow a decision taken elsewhere by others. It was a decision made by this court.’

Mr Harmer’s amendments to the original motion were accepted.

Mr Thomas said much remained to be done.

’What we have at the moment in gas is incredibly complicated,’ he said. ’We have state entities who own the assets related to the importation and supply of natural gas.

’We have Manx Gas as the retailer, who pays the state for assets and also apparently gives the state a preferential rate for the use of gas and the rate is acknowledged not to be the real rate any more. We still need to evolve the solution.

’It cannot be right that the public sector has a rate of one third of domestic customers.’