Manx Gas says it is frustrated at the lack of progress in signing a new regulatory deal.

Policy and Reform Minister Ray Harmer has blamed a dispute over the make up of a new regulatory authority for the delay in reaching agreement.

Winter gas bills are being posted to island homes but there is no sign yet of the promised tariff cuts and refund.

A Manx Gas spokesman said: ’Despite the support of Tynwald for the new agreement in November, we are frustrated by the lack of progress in finalising the details.

’We have repeatedly tried to engage with the government.

’We received the draft contract from the government on December 4 and returned it with our comments on the 14th but have not received a response in over a month.

’We urge the government to agree the full contract, allowing our customers to benefit from the new lower prices for 2021 and refund for 2020.’

The Policy and Reform Minister confirmed in a written reply to a Tynwald question this week: ’A new regulatory agreement with Manx Gas Ltd has not been signed between the parties.

’Manx Gas raised repeated concerns about the constitution of the Communications and Utilities Regulatory Authority.

’Manx Gas were informed that the constitution of the board was being changed and despite numerous assurances that the majority of the board was non-political only began submitting requested financial information for review on December 22 following Tynwald’s approval of the order amending the membership of the authority.

’This consequently has had a significant impact on the ability to reach consensus on a new agreement.’

During question time, Mr Harmer told Tynwald the regulator had been unable to agree the ’base operating cost and modified asset value’.

And he warned: ’I need to be very clear: if we cannot get agreement on the figures and the documentation then the statutory route will be followed.’

Tynwald voted in November to accept the heads of terms of a new voluntary gas deal.

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

Under the new terms, it would see its profits capped at just below 7% for accounts for domestic customers who would also receive a refund averaging at £93.

The Communications Commission - whose role has been telecoms and broadcasting - is taking on a new role as regulator of the gas market.

As the Communications and Utilities Regulatory Authority, it will be party to a new voluntary agreement but could also become the statutory regulator if no voluntary deal is agreed.

Barry Murphy of the IoM Gas Customers Working Group described the saga as a ’national disgrace’.

He said: ’Previous voluntary deals have not worked and the time is now to grant full regulatory powers to the new regulator and impose regulation on Manx Gas to bring this matter to a well overdue conclusion.’

Former policy and reform minister Chris Thomas raised the issue in Tynwald this week.

He has also tabled a series of House of Keys questions about the Manx Gas agreement for next week.

He pointed out that the Tynwald resolution gave a deadline of December 31 to finalise the legally binding regulatory agreement with Manx Gas.

’Given that agreement is not yet finalised, there is no longer a Tynwald mandate for the negotiations continuing and therefore the priority now has to be putting in place a legal-based regulatory regime,’ he said.