Gas customers in the Isle of Man are getting a better deal than those in Jersey and Guernsey.

Manx Gas’s parent company IEG supplies gas to the Isle of Man and the Channel Islands, but Mr Perkins said there was no similar regulatory agreement in the other islands.

He said, based on a consumption of 10,000 kilowatt hours, a household in the Isle of Man could expect to pay £818 per year.

But in Guernsey a customer could expect a bill of £1,380, while in Jersey the figure rose to £1,489.

There was criticism from Rob Callister (Onchan) who accused Manx Gas of portraying tariff reductions, imposed as a result of the regulatory agreement, as price cuts. He asked the OFT to ensure any Manx Gas statements reflect ’what it says on the tin’.

OFT chairman Martyn Perkins said: ’I am not directly responsible for Manx Gas press releases.’

But he added: ’One has to say we were very disappointed with how they communicated the price increase, requiring three letters sent out to consumers.

’It is not the best way of telling consumers prices are actually going back up.’

Mr Perkins added that the OFT was ’stuck’ with a regulatory agreement that was signed under the last administration, by the OFT, Department of Economic Development and Treasury - with the approval of the previous Council of Ministers - but reiterated he was eager to begin a review.

He confirmed the process Manx Gas used to calculate regulatory adjustments complied with the current agreement.