The Communications and Utilities Regulatory Authority has launched a consultation on proposed changes to the gas tariff framework.
CURA says it is aiming to address concerns over excessive pricing for large commercial customers.
The move follows observations that some businesses face tariffs “significantly higher than expected,” with operating margins for these customers reaching 44%, compared to 11% for regulated tariff customers.
CURA’s consultation document states: “The Authority has observed a trend of ‘Special Agreement Customers’ being subject to tariffs that are higher than expected and, importantly, that this trend has been sustained over time.”
The regulator proposes creating a new category, “Regulated Commercial Customers,” for businesses consuming over 500,000 units annually, subjecting them to the same pricing parameters as domestic users.
Transparency
CURA also plans to limit the number of tariffs in the market to six, citing a lack of transparency. “Having a large number of tariffs leads to a lack of transparency from a consumer perspective,” the document notes.
Isle of Man Energy, had previously argued that competition from other energy sources protected large consumers.
However, CURA found “no correlation” between gas prices and demand for alternatives like oil or electricity, concluding that the business holds “significant market power.”
Companies have until August 5 to respond.
CURA emphasised that responses “do not guarantee changes” but will inform its final decision.
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