Island Energy: No plans to remove gas standing charge
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The Islands Energy Group is the primary gas utility and energy service provider in all three crown dependencies The company which provides energy to households on the Isle of Man said it has no plans to change the charging structure, following announcements in the UK Autumn Budget regarding the removal of standing charges.
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On Wednesday, Chancellor John Healy announced the removal of standing charges - fixed daily fees paid regardless of usage - from household gas bills in England, Scotland and Wales, with costs added to the unit rate instead.
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Island Energy said any proposed changes would be subject to consultation with the Communications and and Utilities Regulatory Authority (CURA) on the island.
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A spokesperson warned removing standing charges may benefit some customers but could see others pay more.
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"The cost currently covered by the standing charge would instead be recovered through the unit price of energy," explained an Island Energy spokesperson.
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"This means customers who use less energy could save money, while those who use more could see their bills increase."
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Islands Energy Group supplies energy to homes and business in Guernsey, Jersey and the Isle of Man.
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The gas utility and energy service provider, which serves about 40,000 domestic, commercial, and industrial customers across the three islands, said any change to the charging structure would need to have the clear support of the community, the regulator and government.
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Treasury Minister Michael Crowe said his department was reviewing the various measures set out by the chancellor to understand what the implications might be for the island.
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"As we look towards the Isle of Man Budget, in February 2027, our priority is to strike the right balance between supporting people and businesses today and maintaining strong, sustainable public finances for the years ahead," he said.
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In accordance with the Autumn Statement, the island will extend the reduction in the VAT rate, from 5% to 0% on domestic electricity supplies, until 30 June 2027.
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It will also honor the Customs and Excise Agreement with the UK and continue to apply the cut in fuel duty, by 5p per litre, until 30 June 2027.
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A reduced duty rate for red diesel, introduced in June until the end of the year, will also be extended to 30 June 2027.
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Tell us which stories we should cover on the Isle of Man No further price hike expected for electricity bills Domestic gas bills to fall by 13.8% after review
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