Manx Gas says it has no plans at present to scrap standing charges in the wake of the UK budget announcement.

And it warned that such a measure could mean some customers actually paying more.

In his Autumn Statement, UK Chancellor John Healey pledged to give families and businesses ’breathing space’ from rising costs.

His Budget - the first under the premiership of Andy Burnham - promised action on energy bills, fuel duty, wages and the everyday cost of living.

Mr Healey said the UK government will ask the regulator Ofgem to abolish gas standing charges and move them to unit rates, making bills fairer and giving households more control over what they pay.

But Island Energy said it has no plans at present to follow suit.

A spokesperson said: ‘We currently have no plans to change our charging structure and any proposed changes would be subject to consultation with CURA.

‘It’s worth recognising that removing standing charges would benefit some customers but could mean others pay more, as the cost currently covered by the standing charge would instead be recovered through the unit price of energy.

‘This means customers who use less energy could save money, while those who use more could see their bills increase.

‘As an island-based energy provider, we believe any change of this nature would need to have the clear support of our community, the regulator and government.’

The Isle of Man will follow some measures announced by the UK Chancellor including extending the reduction in the VAT rate from 5% to 0% on domestic electricity supplies.

Introduced on October 1 and due to run until March 31 next year, the reduction will now remain in place until June 30.

And in line with the Customs and Excise Agreement with the UK, the Isle of Man will continue to apply the cut in fuel duty by 5p per litre until June 30.

A reduced duty rate for red diesel, introduced on June 15 until the end of the year, will also be extended to that same date.