Gas tariffs should not be changing for the remainder of 2023, according to a review by the Communications and Utilities Regulatory Authority.

CURA restricts Isle of Man Energy (formerly Manx Gas) from setting tariffs that would result in its permitted revenue being exceeded over a fixed period of time.

The results of the mid year review have just been released, which focused solely on ‘considering the impact of commodity

prices and consumer demand on the allowed returns for Isle of Man Energy’.

For the review Isle of Man Energy provided a range of information which was requested by CURA in order to justify its current tariff structure.

The review focuses on two main components, average commodity cost throughout the year and the amount of units of gas

used throughout the year.

There were two key findings, the first being that projected commodity costs for the full year were lower than projected in the February review, meaning that the commodity cost element of current tariffs was considered too high.

The second is that ‘demand for the year to date was significantly lower than anticipated in February’, with low demand meaning that ‘the overall cost of operating the network is not covered by current tariff levels and that this cost element of tariffs is too low’.

CURA concluded that these two factors ‘largely cancel each other out’, resulting in CURA’s recommendation that there should be no tariff changes at this time.

Forward purchase agreements were also taken into account, with the review noting that these ‘are primarily made by utility providers to ensure tariff stability, not to secure the best value’.

The next tariff review will take place in November 2023, with any changes to brought into effect in January 2024.