17/04/2008
Manx Gas Announces Natural Gas Fuel Cost Adjustment

NEWS RELEASE         17th April 2008

Manx Gas has announced that the cost of natural gas is to go up as a consequence of rising wholesale gas prices. The price for natural gas has been increasing since February last year due to a decline in production levels at a time when demand for gas has increased - gas now generates 40% of the UK's electricity.  The wholesale price of all energy has been driven higher by record oil costs over the past six months and the uncertainty about the world economy following the global credit crunch.  
Manx Gas is increasing all natural gas tariffs by 0.73 pence per unit on 1st May 2008.  This equates to a 14.2% rise for domestic central heating customers.  The increase is going to be applied as a fuel cost adjustment as the underlying factor is the volatility of the energy markets.  This increase does not affect LPG customers.
Alan Bates, Managing Director of Manx Gas, said: "The UK put gas prices up four months ago, and we have held back from following their lead for as long as possible but unfortunately, the current global situation means we have had no other option but to introduce a fuel cost adjustment and pass these costs to our customers.  The cost of buying wholesale natural gas has gone up dramatically at a time when oil prices have also reached all time highs.  Should global wholesale prices go down, Manx Gas will reduce local prices as well, as we did in April and July 2007.  Even with this increase the price of natural gas in the Island is still lower than it was at the beginning of 2007."
"In the meantime, I would encourage all our customers to ensure their gas appliances, systems and controls are operating efficiently to minimise the effect of this increase and to take advantage of energy saving products available."
Mr Bates also said that natural gas is the least damaging fossil fuel to the environment with almost 30% less carbon emissions than oil. 
The increase to the natural gas tariffs has been discussed with the Office of Fair Trading.
Anyone concerned about their energy costs should contact Manx Gas on 01624 644444.