Communications and Utilities Regulatory Authority (CURA) has recommended a 2.8% reduction in gas tariffs.
CURA issued a notice today (June 18) that based on a mid-year review the gas tariffs should be brought down by 2.8%.
The regulator require two tariff reviews to be carried out per year, with new tariffs being subsequently introduced where required.
Gas tariffs
The scheduled mid-year review is confined to considering the impact of commodity prices and consumer demand on the allowed returns for Isle of Man Energy.
The review found that demand for the year to date was higher than previously anticipated in December, this is important as the Authority in effect divides the cost of running the network across the total units of gas it is estimated would be used in the year.
Higher demand means that the overall cost of operating the network is more than covered by current tariff levels and creates a risk of an over-recovery.
CURA says that this means there is a risk of a small over-recovery for Isle of Man Energy, and would make it possible for the company to make more profits than it is allowed.
The reduction equates to a c. 0.3p reduction per unit.
The next review is due in November, with any update to tariffs to be implemented in January 2025.
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