Cost of gas could drop 7.4% in proposed deal

Tynwald asked to approve agreement 'overview'

Gas users on the Isle of Man could see the cost drop by 7.4 should government secure a proposed new regulatory deal.

The Cabinet Office has released an overview of a new agreement with Manx Gas, which is set to go before Tynwald for approval on Tuesday. 

The mooted 7.4 per cent tariff price drop will be achieved by reducing the energy company's capital costs, and other commitments. 

No contract has been agreed between the two parties, but if one is, the new proposal would remain in force for ten years.  

Tynwald had asked for Policy and Reform Minister Ray Harmer to come back with a 'heads of terms' agreement, but this has now been put off until October.

Manx Gas was given notice on 30 June that the current voluntary agreement would be scrapped.