Island householders are being promised a better deal after Manx Gas agreed to voluntary regulation of its profits for the first time.
What's described as an historic deal with the Office of Fair Trading, Treasury and the Department of Economic Development will commit the utility company to lower profit levels.
The voluntary agreement, to run for a minimum of four years, came into effect on 1st January 2015.
OFT chairman David Quirk MHK has estimated the new regime will pass on a £2 million saving to Island consumers over that period.
A formula weighing profits and the cost of capital assets used to produce them, has been used by the OFT to define an acceptable range of profitability.
Under the voluntary agreement, that will be reduced from 10.6% to 9.99% - although the move is not expected to trigger price cuts.
An OFT report into gas prices in 2008 concluded the profits of Manx Gas were not excessive.
But that hasn't assuaged consumer concern.
Manx Gas faced criticism last autumn for imposing a tariff hike of almost 3% after the prolonged warm summer.
The company said it was necessary to maintain profits within the defined acceptability range.
Tony Nicholls managing director of Manx Gas has welcomed the new agreement, which he describes as 'challenging but fair'.
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