Island Energy has no plans to change Isle of Man gas standing charges
The Isle of Man supplier says any change would need support from the community, regulator and government, and warns heavier users could pay more.
At a glance
- Island Energy says it has no plans to remove standing charges from household gas bills on the Isle of Man.
- The UK Autumn Budget announced removal of standing charges in England, Scotland and Wales, moving costs to the unit rate.
- Island Energy says any change would need support from the community, regulator and government, and could raise bills for heavier users.
Island Energy has no plans to change its charging structure after the UK Autumn Budget announced the removal of standing charges from household gas bills in England, Scotland and Wales, the Isle of Man supplier said.
Any proposed changes on the island would be subject to consultation with the Communications and Utilities Regulatory Authority (CURA), Island Energy said. The UK announcement was made on Wednesday by Chancellor John Healy.
Standing charges are fixed daily fees paid regardless of usage. Under the UK plan, they would be removed from household gas bills in England, Scotland and Wales, with the costs added to the unit rate instead.
Warning over bill impacts
An Island Energy spokesperson warned that removing standing charges may benefit some customers but could see others pay more.
"The cost currently covered by the standing charge would instead be recovered through the unit price of energy," the spokesperson explained.
"This means customers who use less energy could save money, while those who use more could see their bills increase."
The comments suggest that lower users could pay less, while heavier users could face higher bills because the fixed cost would be recovered through the energy they use.
Consultation and support
Island Energy said any change to the charging structure would need to have the clear support of the community, the regulator and government.
The company is part of Islands Energy Group, which supplies energy to homes and businesses in Guernsey, Jersey and the Isle of Man.
The gas utility and energy service provider serves about 40,000 domestic, commercial and industrial customers across the three islands.
The UK budget move applies to England, Scotland and Wales, not the Isle of Man, so Island Energy's current charging structure remains in place for now.
Source: BBC Business.
Questions and answers
- Why is Island Energy not removing standing charges?
- It said it has no plans to change the charging structure and that any change would need consultation with the Isle of Man's Communications and Utilities Regulatory Authority and support from the community, regulator and government.
- What are standing charges?
- They are fixed daily fees paid regardless of how much energy a household uses. The UK Autumn Budget announced their removal from household gas bills in England, Scotland and Wales, with costs added to the unit rate.
- Who does Island Energy supply?
- It is part of Islands Energy Group, which supplies homes and businesses in Guernsey, Jersey and the Isle of Man, serving about 40,000 domestic, commercial and industrial customers.
