The Office of Fair Trading was caught out by Manx Gas’s announcement last month that it was changing its prices.

In the middle of October Manx Gas said it had reached a deal with the government on a proposed new gas tariff.

However, that announcement was shortly after branded by ’presumptuous’ by Policy and Reform Minister Ray Harmer, who said that what had been agreed was the wording for heads of terms of agreement, which had not been put before the Council of Ministers for approval.

He told Tynwald he was hoping to give full details of the agreement at the November sitting.

In the House of Keys last week, Mr Harmer’s predecessor Chris Thomas (Douglas Central), asked OFT chairman Martyn Perkins if Manx Gas had given the OFT written notice of the tariff change, as required under current rules.

Mr Perkins said Manx Gas was required to give eight weeks’ notice but had not done so in this instance.

He added: ’The Office of Fair Trading was a bit surprised that we did not hear from Manx Gas.

’However, they have been negotiating directly with the Cabinet Office and one would assume that that would have been relayed back down the line, but as yet I am not sure whether the Cabinet Office have had confirmation of this.

’In due course I think it probably will be confirmed, but at the moment we have not had confirmation.’

When it made its announcement Manx Gas said that, 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 such a deal receives Tynwald approval, it says average household bills should fall from £680 a year to £587.

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

’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.’