Isle of Man gas supplier keeps standing charge after UK budget change

The main gas supplier on the Isle of Man has said it does not intend to change how it charges households, even after the UK government announced that standing charges will be removed from domestic gas bills in Great Britain, BBC News reports.

In the UK Autumn Budget, Chancellor John Healy said the fixed daily fee that households pay regardless of how much gas they use would be scrapped in England, Scotland and Wales. Those costs will be moved into the unit rate instead.

Supplier points to winners and losers

Island Energy said any move to follow suit on the island would first need consultation with the Communications and Utilities Regulatory Authority (CURA). It added that a change would also require clear backing from the community, the regulator and the government.

The company argued that shifting the fixed charge into the price per unit would not lower overall costs. Customers with low consumption could pay less, it said, while heavier users could face higher bills.

Islands Energy Group supplies gas and energy services to around 40,000 domestic, commercial and industrial customers in Guernsey, Jersey and the Isle of Man.

Government reviewing UK measures

Treasury Minister Michael Crowe said his department was studying the measures in the chancellor's statement to assess their effect on the island. Looking ahead to the Isle of Man Budget in February 2027, he said the aim was to "strike the right balance between supporting people and businesses today" while keeping public finances sustainable.

Several cost-of-living measures will be extended on the island in line with the UK statement:

• VAT on domestic electricity will stay at 0%, down from 5%, until 30 June 2027.
• The 5p per litre cut in fuel duty will continue until 30 June 2027, under the Customs and Excise Agreement with the UK.
• A reduced duty rate on red diesel, introduced in June and due to end this year, will run until 30 June 2027.

What it means for businesses

For firms and households on the island, the decision means gas bills will keep their current split between a fixed daily charge and a usage-based rate for now. Businesses that depend on fuel, including those using red diesel, gain some certainty on costs until mid-2027. Any future change to gas tariffs would go through a regulatory consultation, giving customers a chance to weigh in before pricing is altered.