Isle of Man Energy says it is taking legal advice after the utilities regulator ordered a reduction in tariffs for some commercial and domestic customers.
The decision by CURA will lower gas tariffs for around 30 of the island’s largest users, moving them onto rates below those paid by the majority of customers.
The ruling comes despite the energy firm maintaining it already provides the lowest-cost energy on the island. The company has also pointed to its hedging strategy, which it says has protected customers from significant increases in wholesale gas prices.
Steady
Unregulated commercial gas tariffs are to remain at their current rate through to late 2026. Domestic regulated tariffs have stayed steady, with only a modest increase expected following a scheduled review with Cura in June.
Chief executive of the Island Energy Group, Graeme Millar, said the company was surprised by the outcome.
“We are surprised and disappointed by the outcome of the review, which comes at a time of substantial increases in wholesale gas prices.”
“We empathise with our customers as they continue to face cost-of-living pressures.
“We are proud to provide the lowest-cost energy on the iland and will continue to protect customers from the full impact of market volatility through our hedging strategy.
“Our focus remains on supporting customers and maintaining stable, competitive energy pricing for the Island.
“We are now reviewing the implications of the decision, taking legal advice and continuing to engage constructively with CURA as part of the process.”