Following a detailed investigation into energy prices by the Office of Fair Trading (OFT) culminating in the publication of a report entitled ‘Further investigation into gas prices in the Isle of Man’ in February of 2008, we have continued to monitor and question the suppliers on an ongoing basis.

Manx Gas Ltd has voluntarily agreed to co-operate with the OFT by providing information which underpins its decision on tariffs and which demonstrates its return on capital employed.

The OFT has been made aware of the costs which Manx Gas believes justifies the new tariffs announced today. They have confirmed to the OFT that the changes are necessary to maintain the levels of return on capital which were within the range deemed to be acceptable in the 2008 study.

David Quirk MHK, the Chairman of the OFT, said:

‘Whilst the OFT is not a regulator it will continue to look carefully at the profitability of the local energy markets and in particular ensure that suppliers are not enjoying excessive profitability at the expense of Manx consumers.’