Manx Gas has announced that it has reached an agreement with the government on a proposed new gas tariff.

The proposed deal will now be discussed in Tynwald next week.

Under the proposal, natural gas domestic and small business customers would get an average refund of £93 on their 2020 bill, a cut of 13.7%. There would also be the same reduction in tariff for 2021.

If the deal is approved by Tynwald, average household bills should fall from £680 a year to £587.

Manx Gas chief executive David Cruddace said: ’This is good news for customers.

’Gas prices on the Isle of Man are already lower than those charged by the island’s electricity company and if this deal is approved they will be even lower.

’The new pricing arrangements will ensure that the customers get a refund now, the best possible deal in 2021, and competitive pricing in years to come.’