On Air Feel Good Friday Mark Burrows | 3:00pm - 5:30pm
Oasis - Don't Look Back In Anger Download
Listen Live
On Demand
On Air Feel Good Friday Mark Burrows | 3:00pm - 5:30pm
Oasis - Don't Look Back In Anger Download

Gas tariffs to fall 16% following review by regulator

Friday, 22 December 2023 07:33

It's expected to come into effect from January

Gas tariffs on the Isle of Man are expected to be cut by around 16 percent following a review by the regulator.

A fall in consumer inflation and estimated commodity costs for 2024 are in part behind the drop.

The Communications and Utilities Regulatory Authority - otherwise known as CURA - carries out bi-annual tariff reviews.

Under the Gas Regulations 2022, the public gas supplier "may not fix tariffs that are likely to result in its allowed revenue being exceeded".

As such, Isle of Man Energy is required to consider various factors to ensure it remains in compliance:

  • Commodity costs
  • Operating costs
  • Depreciation costs
  • Pension contributions
  • Allowed network return, revenue and retail costs
  • Prior revenue adjustments
  • Isle of Man Energy's regulated asset base
  • The average cost of capital
  • Retail margin percentage

CURA says it's 'satisfied' the assumptions made by the gas supplier are reasonable and sees no reason to intervene.

The next tariff review is scheduled to take place in June 2024, with any update to the tariffs to be implemented in July 2024.

The 16 percent reduction is set to come into effect from January 2024.

Share

More from Isle of Man News