Island Energy has no plans to scrap gas standing charge

Island Energy has said it has no plans to remove the standing charge from household gas bills on the island, despite the UK Government’s decision to scrap the fee for customers in Great Britain.

According to BBC News Isle of Man, Chancellor John Healy announced in the UK Autumn Budget on Wednesday that standing charges would be removed from household gas bills in England, Scotland and Wales. The standing charge is a flat daily amount billed whatever a household’s consumption. Under the UK change, that cost will be moved onto the unit rate instead.

Manx Radio reported that the UK measures also include a £100 household energy payment for 20 million households in Council Tax bands A to D.

An Island Energy spokesperson told the BBC that dropping the standing charge would not help everyone, and that some customers could end up paying more.

“The cost currently covered by the standing charge would instead be recovered through the unit price of energy,” the spokesperson said.

The company said that would leave lighter users better off, while households that use more gas could face higher bills.

Island Energy said any proposed change would be subject to consultation with the Communications and Utilities Regulatory Authority (CURA), the island’s utilities regulator. It said that any change to how customers are charged would have to be clearly backed by the public, by CURA and by the government before it could go ahead.

The BBC said it had contacted CURA for comment. No response from the regulator had been reported.

The BBC reported that Islands Energy Group supplies energy to homes and businesses in Guernsey, Jersey and the Isle of Man. It said the group serves about 40,000 domestic, commercial and industrial customers across the three islands.

Manx Radio and the BBC each reported the company’s position on Thursday. Manx Radio referred to the supplier as Isle of Man Energy, while the BBC used the name Island Energy.