No action will be taken for now against Manx Gas over changes to its charges, Chief Minister Allan Bell told MHKs.
There has been widespread criticism at the utility firm’s move to introduce a banded standing charge but lower the unit price of gas from January.
The issue was raised again in the House of Keys by Peter Karran (Lib Van, Onchan), who queried the voluntary regulation agreement that had been signed.
Mr Karran said: ‘It is quite alarming that gas consumers pay £961 for the same equivalent gas as a consumer in Liverpool for £548, Belfast at £514, and Dublin.
Mr Bell replied he did not know whether these figures are accurate or not, but if they were, he suggested Mr Karran took them to the Office of Fair Trading get them verified and take appropriate action.
The Chief Minister said the agreement brought in from January this year provided ‘binding but light-touch’ regulation, allowing Manx Gas free to manage its business as it sees fit, so long as it does not increase profits above the agreed limit of 9.9 per cent of the capital employed.
He said the OFT has scrutinised the changes and confirmed they are intended to be revenue neutral for Manx Gas, with some consumers paying more for their gas and some ‘a lot less’ and overall, no one will pay more than £25 annually than they do today.
Lib Van leader Kate Beecroft (Douglas South) asked whether the Chief Minister would meet with people who can show that their bills are actually going to be an ‘awful lot more’ than the £25 differential.
Mr Bell replied that he had given that £25 figure in good faith based on information supplied to him by the OFT. He said if any MHK has evidence that those figures are incorrect, they should go to the OFT, who he described as the ‘policemen’ of this particular agreement and who he said will take appropriate action.
John Houghton (Douglas North) asked the Chief Minister who was being ‘hoodwinked’. ‘Is it you, is it the public, or is it Manx Gas winning all the way to the bank?’ he said.
Source: IOM Today
