The energy regulator has dismissed reports that gas prices are set to rise soon.

The Communications and Utilities Regulatory Authority has responded to media reports on changes that could see Isle of Man Energy tariffs increase by 0.2p per unit, equal to £16 a year per customer.

Tariffs fell from a record high of 22.21p per unit to 16.67p per unit in November last year following a regulator’s review after a big drop in wholesale gas prices. Tariffs were cut again to 13.98p from March 1.

The consultation is looking at changing the current regulatory framework to allow the gas supplier to increase its costs of debt – and so increase the maximum return it can generate.

But CURA said this will only change the tariff by a fraction of a penny and the biggest influence on bills is the cost of gas on the commodity market – and this is coming down.

It said: ‘Nobody can accurately predict what market prices will be in December and January, least of all regulators. But based on forward prices currently available, if a tariff was being set today it would be lower than the current tariff.’