A rebate of at least £58 will be paid to thousands of Manx Gas customers early next year as the result of an agreement by the Isle of Man Government to adjust loans it holds with Manx Utilities.
The arrangement has been established following a decision to reduce the amount Manx Gas pays Manx Utilities each year in relation to infrastructure payments, with £1.4m savings being passed on to consumers in full.
After considering a number of options about how the rebate should be paid and who should receive it, Council of Ministers have agreed that Manx Gas will pay the credit to all domestic and business customers. Customers who have not been billed for any units of gas in the previous 12 months to end of November 2021 will not receive the credit.
Isle of Man Government accounts were excluded from all consideration and will not receive the rebate.
Cabinet Office Minister Kate Lord-Brennan MHK said:
‘The forthcoming rebate will be welcomed by gas customers after the recent news that prices will rise due to pressure on energy costs being felt across the globe.
‘Isle of Man Government has worked hard to put in place a mechanism which will see Manx Gas’s outgoings reduce, in order that the resultant saving is passed directly to those affected.’
Jo Cox, CEO of Islands Energy Group, the parent company of Manx Gas, welcomed the news. Mrs Cox said:
‘We are delighted to have worked alongside Isle of Man Government to bring this rebate to our customers. At a time of unprecedented and ongoing volatility in the global gas markets, it’s important that the funds go directly to people who are experiencing an impact to their cost of living. If anyone is worried about their bill this winter, we would urge them to get in touch with us on 644440 so that we can discuss affordability plans and direct them to any additional help that may be available.’
The rebate will appear on bills from February as a standard credit.
Frequently Asked Questions
Who will receive the credit?
All gas customers, domestic and commercial (excluding government), who were billed for gas units in the 12 months up to the end of November 2021 will receive a credit in their bills. Customers who did not have gas usage on their bills will not receive the credit.
How and when will the rebate appear in the gas bill?
The credit will appear in gas bills for qualifying customers from February 2022 onwards.
What should I do if I haven’t received the credit next year and I think I qualify?
Please check your bill received from 15th February 2022 onwards for the credit, before calling Manx Gas on 644440 to discuss any concerns.
Where has this credit in gas bills come from?
When IOM Government was working on the voluntary regulation of Manx Gas, a rebate to gas customers was discussed. A contribution was to come from Government through adjusting the charges to Manx Gas, and some was offered from Manx Gas directly.
Manx Gas is now regulated in law by the Communications and Utilities Regulatory Authority, but IOM Government remains committed to honouring its contribution to lowering costs to gas customers.
The credit in the bill is from IOM Government achieved through adjusting loans with Manx Utilities who then charge Manx Gas. IOM Government has agreed with Manx Utilities to reduce the amount charged to Manx Gas on the condition that the resultant saving is passed to Manx Gas customers.
IOM Government has agreed to reduce the amount charged to Manx Gas on the condition that the resultant saving is passed to Manx Gas customers.
The standard credit in the bill relates to the reduction of £1.4 million in the charge for the period 1st January 2020 – 31st December 2021.
How will the lower costs be passed on to gas customers after 1 Jan 2022?
Going forward the rate of interest will be at a reduced level, which will be tracked in the regulatory model considered by Manx Gas’s regulator, the Communications and Utilities Regulatory Authority.
