Tynwald members have voted to accept the heads of terms of a new voluntary gas deal.

After a debate lasting more than two hours on Tuesday, Tynwald embraced the deal negotiated by Policy and Reform Minister Ray Harmer.

Mr Harmer called on members to either accept or reject the heads of terms, rather than embracing any of the amendments tabled.

Under the previous regulatory agreement signed by the government in 2015, Manx Gas was controversially guaranteed a 9.99% return on capital employed.

But under the new terms, Manx Gas would be permitted to achieve 6.99% - essentially, capping profits at just below 7% on accounts for domestic natural gas and LPG customers.

The deal also means the majority of domestic customers will receive a £93 refund.

David Cruddace, Manx Gas chief executive, said: ’This is very good news for our 21,000 customers. They will get a refund in their 2020 bill and a reduced tariff for 2021.

’The next step is to flesh out these draft terms into a full contract and we will continue to push government to deliver the document.

’Once this final agreement is signed, we can begin processing the refunds. I promise we will do this as quickly as possible.’

The deal came under fire from some members. Chris Robertshaw (Douglas East) claimed it was ’selling us all down the river’. New MHK for Douglas South Claire Christian, tabled an amendment called for the deal to cover commercial customers too.

Chief Minister Howard Quayle said members were united in wanting a better deal for gas customers and this proposal was the best way forward. He described the 2015 agreement as a ’dreadful deal’ and said Manx Gas had earned more than it was permitted through the use of inter-company loans.