Dr Allinson May Have to Dig Deeper

Islanders risk being worse off than their counterparts in the UK after PM Liz Truss announced a plan to cap average household bills at £2,500.

Ms Truss announced her plan today in a move that supersedes the Ofgem price cap.

Under the new prime minister’s plans, average energy prices will be capped at £2,500 a year from 1 October for the next two years. Ms Truss told the House of Commons that this will save the average household £1,000 a year, based on current energy prices from October 1.

The new cap will benefit households in both Great Britain and Northern Ireland.

Last month, the Manx Treasury announced that average energy use on the island should lead to an overall annual cost for Manx households using gas of around £2,840.

Under those figures, islanders who use gas will face an average bill of £2,000 a year, as well as a £840 bill for electricity, which has been frozen, subject to Tynwald approval, until March 31 2023.

On Tuesday, Dr Alex Allinson will seek Tynwald support for measures which include the price freeze, estimated to cost up to £26m in gov loan for Manx Utilities. 

Other measures include the capping of bus fares at a maximum of £2 per journey for a three-month trial from November 1,  a third round of targeted support payments in December for those in receipt of child benefit and those on low incomes, accelerating an £8,000,000 programme to improve energy efficiency in homes and the establishment of a Community Support Fund. 

However, given the support announced in the UK today and how it compares with the Manx gov’s own figures, all eyes will be on whether the Treasury Minister will have to dig deeper down the back of his office couch.