There are no plans to introduce an energy regulator, Tynwald was told.
But Chief Minister Allan Bell revealed Manx Gas was willing to enter into a more formal regulatory agreement with government.
He was replying to a question from Kate Beecroft (Lib Van, Douglas South), who suggested an ‘awful lot’ of the public do not have faith in the Office of Fair Trading as a regulator and an independent regulator was needed.
Mr Bell said the Council of Ministers supported the principle of competitive markets with regulation only being introduced where ‘absolutely necessary’.
He said: ‘The focus of energy regulation is on the gas market, where Manx Gas has a monopoly position and customers generally face significant costs and practical barriers if they wish to change their fuel choice.
‘The OFT maintains a close watch on the gas market. It has worked closely with Manx Gas since the last price investigation and has, based on commercially confidential information, been able to see that profits have been kept within what the OFT considers to be an acceptable range.
‘The company has expressed a willingness to go further and enter into a more formal voluntary regulatory arrangement to ensure effective performance, and this is being explored through the OFT and Treasury, which will report back to CoMin in due course.’
He added: ‘While the OFT and Treasury are exploring regulation, whether voluntary or statutory, it is not anticipated there would be a new energy regulator, and the role would be encompassed in an existing structure, rather than creating a new bureaucracy.’