Manx gas prices 'not excessive'

The gas prices on the island will continue to be monitored

Manx gas customers are not paying excessive prices, the Office of Fair Trading (OFT) has concluded.

Provider Manx Gas Ltd showed its accounts to government officials, who have found that the firm's profits are within benchmark levels.

The move follows complaints by customers after an increase of 20% in gas prices on the island.

Bill Henderson, OFT chairman, said the firm is not making excessive profit and would adjust prices if costs fell.

He said that the OFT wanted to look at whether the gas provider should be absorbing extra fuel costs.

'No excessive profiteering'

"I would hope Manx Gas can continue to absorb what costs they can and that this remains the case at the end of the winter heating period," Mr Henderson said.

"We have been assured by the company that the fuel cost adjustment will be reduced or removed if the amount they pay for gas falls.

"This could still be feasible but I am able to confirm that I am satisfied that the company's profits for the last accounting period are within an acceptable range."

He said the situation would continue to be reviewed.

"It is our job to ensure that consumers are being charged a fair price and that although gas is currently expensive, there is no excessive profiteering," Mr Henderson said.

"I am pleased that Manx Gas is willing to help us and in turn we can reassure the consumer as far as we can in this respect."