Manx Gas is anticipating price rises as wholesale gas prices soar.

And, since the island’s main power station burns gas, there could be a knock-on effect on the price of electricity.

Private company Manx Gas has told the Manx Independent that it is in ’emergency discussions’ to review its pricing in light of the extreme volatility.

Data shows the cost of gas for suppliers in Europe has increased by 250% since the start of the year, with a 50% rise since August

The rise in costs has been put down to a number of factors, including a cold winter earlier this year which left gas stocks depleted, as well as refineries in the US being shut down by Category 4 Hurricane Ida, according to industry analysts.

High demand for liquefied natural gas from Asia and a drop in supplies from Russia have also contributed to the price rise.

Manx Gas is owned by Islands Energy Group, which also supplies Jersey and Guernsey.

A statement reads: ’We are keenly aware of the current volatility in the wholesale gas market.

’The price of wholesale gas has risen considerably and many suppliers are dealing with the impact of this.

’We have seen a 90% increase in our costs through the last year and therefore are in emergency discussions to review our current pricing across the three islands we supply as a result.

’These discussions are likely to result in price increases in all islands.

’We will inform our customers as soon as possible once we have confirmed what this will be.’

It continues: ’Energy markets are subject to a variety of complex influences and there have been a significant number of events across the world in recent times, such as Brexit, Covid, storms across America, and unpredictable weather globally.

’It isn’t possible to pinpoint one specific thing that has caused the cost of supplying gas to increase, but all these things have combined to affect supply chains, increasing the cost of many things that are crucial to the supply of gas.

’We understand that news of price increases for customers can cause concern and we would like to remind our customers that they can sign up for our Priority Customer Care service if they would like to discuss any additional support that we are able to give them.

’Our team can be reached on 644444.’

Meanwhile, there are fears of a knock-on effect on electricity prices here, as Manx Utilities’ Pulrose power station is powered by gas turbine.

MU did not answer that point directly but told the Manx Independent: ’Manx Utilities continuously monitors gas prices and has measures in place to reduce the risk that volatilities in the gas market may have on the price consumers pay. Manx Utilities will continue to watch the market.’

The issue has made headlines in the United Kingdom and a number of small energy suppliers there have already collapsed due to the rise in prices. Two energy companies with more than 800,00 customers have also collapsed.

Some companies have criticised the UK energy regulator Ofgem’s price caps for preventing them from passing on the rise in prices to their customers.