Gas prices to increase on Island?

Gas customers on Island could have to fork out funds, if Tynwald agrees to increase the price cap. 

Tynwald will be asked to approve a gas increase of 27 per cent for mains gas and LPG heating tariffs when it meets this month.

It comes following a review of pricing by the Communications and Utilities Regulatory Authority (CURA) - the Island's gas market regulator.

This was triggered following the unprecedented increase in gas prices across the globe in recent weeks - with the cost of wholesale gas quadrupling in price. 

Last month, the price of gas on the international commodity markets recorded the highest prices in  years due to several economic and political factors.

Ofgem in the UK has recently approved a 28% price increase, as has the Northern Ireland Utilities Regulator.

If the cap increase is approved, Manx Gas would be able to increase charges to consumers by up to 2.1 pence per unit of gas - the new prices will come into play from mid-October. 

Because of the increase in price to suppliers, Manx Gas says it means a unit of gas now costs more than the company is able to charge its customers. 

CURA says the situation is 'unfortunate but unavoidable' adding there is 'little that can be done' to alleviate the impact on customers on the Island.