Island Energy: No plans to remove gas standing charge
The provider said any change would need support from the community, the regulator and government.
**Island Energy: No plans to remove gas standing charge**
The Islands Energy Group is the main gas utility and energy service provider across all three crown dependencies.
The company supplying energy to households on the Isle of Man said it has no intention of altering its charging structure, after announcements in the UK Autumn Budget about the removal of standing charges.
On Wednesday, Chancellor John Healy announced that standing charges — fixed daily fees paid no matter how much energy is used — will be removed from household gas bills in England, Scotland and Wales, with the cost instead added to the unit rate.
Island Energy said any suggested changes would first have to go through consultation with the Communications and Utilities Regulatory Authority (CURA) on the island.
A spokesperson cautioned that while removing standing charges could help some customers, it could also mean others pay more.
“The cost currently covered by the standing charge would instead be recovered through the unit price of energy,” said an Island Energy spokesperson.
“This means customers who use less energy could save money, while those who use more could see their bills increase.”
Islands Energy Group provides energy to homes and businesses in Guernsey, Jersey and the Isle of Man.
The gas utility and energy service provider, which serves around 40,000 domestic, commercial and industrial customers across the three islands, said any change to the charging structure would need clear backing from the community, the regulator and government.
CURA has been contacted for comment.
Treasury Minister Michael Crowe said his department was examining the different measures announced by the chancellor to understand what impact they might have on the island.
“As we look towards the Isle of Man Budget, in February 2027, our priority is to strike the right balance between supporting people and businesses today and maintaining strong, sustainable public finances for the years ahead,” he said.
In line with the Autumn Statement, the island will extend the reduction in the VAT rate from 5% to 0% on domestic electricity supplies until 30 June 2027.
It will also honor the Customs and Excise Agreement with the UK and continue the 5p per litre cut in fuel duty until 30 June 2027.
A reduced duty rate for red diesel, introduced in June and due to run until the end of the year, will also be extended to 30 June 2027.