Utilities bills to continue to rise with inflation

Electricity, water and sewerage bills will continue to rise in line with inflation after Tynwald backed Manx Utilities' updated five-year pricing strategy.

But electricity charges could be adjusted to reflect any significant changes in energy costs, after a vote during the December sitting.

The previous plan, set in 2018, was extended by 12 months in 2023 due to volatility in wholesale markets following the invasion of Ukraine the previous year.

Vice chairman of the energy firm Peter Greenhill MLC said the plan was not about "making money" and would ensure customers had "certainty and stability".

In a statement the firm said the scheme would also allow it to remain on schedule to meet its bond repayments in the 2030s.

Manx Utilities formally requested approval for the strategy and increases following the publication of its pricing review for 2025-30 during the last Tynwald sitting of the year.

Greenhill told members an external review by Economic Consulting Associates on the previous pricing strategy had not identify "any significant issues and therefore many aspects are being carried forward".

"We continue to monitor wholesale energy prices daily and are keen to lower electricity tariffs when market conditions allow," he added.

The document suggested that electricity standing charges were "significantly lower than those in the UK" and did not cover the cost of maintaining a connection.

But the government-owned utilities provider said it was "conscious of the impact that standing charges have on customers who consume low volumes of electricity" and therefore increases have been limited to match inflation.

The review also suggested a range of tariff options should be considered to improve customer choice, including a social tariff for those who struggle to pay for their energy usage.

Tim Glover MHK told members he was uncomfortable about the "details of the unknown" in the report that were yet be explored by the firm.

But Rob Callister MHK praised the reviews for providing "clear and transparent information".

The strategy and a 2.2% rise in the sewerage rate for the financial year starting on 1 April were supported by Tynwald, with 23 members voting for the moves and six against.

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