The current voluntary agreement with the Office of Fair Trading to regulate gas prices is the most economic approach, according to Chief Minister Allan Bell.
Speaking in Tynwald, Mr Bell added, if the system did not appear to be working it would be re-examined.
He was responding to Douglas South MHK Kate Beecroft, who asked if it was the Chief Minister’s policy to authorise the Office of Fair Trading and Treasury to negotiate a voluntary regulatory regime for gas suplies with Manx Gas.
Mr Bell said it was a voluntary agreement favoured by the Council of Ministers.
‘I do not personally authorise any board or department to undertake its normal function. In a wide number of scenarios it is better to proceed by negotiation than by enforcement, backed by legal powers if necessary,’ he said.
He added the voluntary system caps the profit Manx Gas can make. It would cost around £250,000 to set up a regulatory authority but this remained an option.