Surge in people on gas payment plans sparks fears of possible hike in tariffs

The number of people on instalments with Isle of Man Energy has doubled in half a year

There are fears gas tariffs on the Isle of Man could rise to make up a shortfall in profits due to the number of people on payment plans.

In the House of Keys this week, MHK Chris Thomas revealed the number of residents on instalments has doubled in six months.

Isle of Man Energy is regulated by the Communications and Utilities Regulatory Authority (CURA), which caps what the supplier can make in earnings each year by way of a percentage to protect against profiteering, and reviews its tariffs twice a year.

Disconnections became a big talking point towards the end of last year too, but it appears they're not a thing of the past.

Manx Radio understands only a small proportion of the 400 people on payment plans have been disconnected though.

A single mother of two who was cut off two weeks ago and remains so spoke out on social media.

She says she pays a standing order of £50 and has engaged with Isle of Man Energy over payment options, but can only afford monthly instalments of up to £100.

However, the supplier has told her that's not enough, and subsequently struck her off the register.

Towards the end of last year, Isle of Man Energy said disconnections are a 'last resort' and only happen in a situation where a customer refuses to engage with the company.

Chief Executive of the Islands Energy Group Jo Cox, the parent company of Isle of Man Energy, was asked if that promise is still true:

The demographic of the 400 people on payment plans is said to be largely working-age people that are struggling, and fewer pensioners.

Payment plans are interest free which means Isle of Man Energy is effectively losing out on revenue.

The gas supplier is a private entity and is in business to make money; so at what point will it protect itself from loss of income?

IEG is putting up its prices up for its customers in Jersey and Guernsey next week, while CURA is scheduled to review the Island's gas tariff's next month, with any changes set to be implemented in July.

Douglas Central MHK Chris Thomas has been following the issue and warns providers are being burdened with social issues which are not their responsibility:

The emergency laws which prevent Isle of Man Energy from disconnecting vulnerable people during the winter months are due to be put under review again in October.

Some politicians felt the definition of 'vulnerable' was too narrow.

Rushen MHK Michelle Haywood wants to see a broader definition similar to the UK which sees any family with under-16s classed as vulnerable throughout the winter months.

Outside of that period, anyone with a child under the age of five would fall into that category too.

However, the review and any subsequent changes would be subject to Tynwald approval.