Manx Gas’s announcement of a deal with the government jumped the gun, according to the government’s negotiator.

Policy and Reform Minister Ray Harmer has today told Tynwald that he ’regrets’ he is not able to place heads of terms before the court this week.

Mr Harmer said there had been ’extensive negotiations’ with the utility supplier and that an agreement was only reach on Thursday last week.

He added that while he could’ve sought a supplementary order paper to the October Tynwald, he chose not to as it wouldn’t have allowed members time to scrutinise the deal.

Mr Harmer told members that Manx Gas’s press release last week that it had reached an agreement with the government on a proposed new gas tariff was ’more than a little presumptuous’.

He added that: ’We agreed wording for a possible head of terms agreement, that is it.’

Mr Harmer said that the company was told the Council of Ministers need to agree to those terms before any agreement goes before Tynwald.

We will have more coverage on this and much more from the first Tynwald sitting of the parliamentary year in Thursday’s Manx Independent.

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.’