A new regulatory deal for Manx Gas should be published before the end of the year.

Policy and Reform Minister Chris Thomas made the pledge in Tynwald. Manx Gas has already announced plans to drop its deeply unpopular banding regime - where customers in different groupings faced different standing charges.

Mr Thomas said negotiations between the government and Manx Gas over a new regulatory deal were ’ongoing’.

He added: ’Both sides continue to negotiate in good faith with government to bring a fair deal for the people of the Isle of Man.

’It is hoped that negotiations will be completed by November 30 and a new agreement published before the end of 2019.’

If a deal is reached, it would not require Tynwald approval. If a deal is not struck, Mr Thomas said the government had the option of imposing a new regulatory regime through legislation introduced as ’a matter of national policy priority’.

That lingering threat to Manx Gas was reinforced by Chief Minister Howard Quayle: ’If negotiations are not completed by November 30, we will consider a legislative route.’ A regulatory agreement signed with the government in 2015 saw Manx Gas’s profits capped but guaranteed at 9.99%.

Under a charging regime introduced by Manx Gas in January 2016, the old 16p a day standing charge was replaced with a banded system. It led to demonstrations with protestors saying they were left with much bigger bills.

In February, Manx Gas announced customers would be allowed an opt out from the banding system. In September, it revealed plans to scrap the banding system and return to the standing charge.