Business
Electricity Increase Lowered
Although wholesale gas prices are expected to settle, they are likely to remain significantly higher than the pre-energy crisis costs.
Manx Utilities has announced a reduction in the intended 6 pence per unit increase scheduled for July 1 to 2 pence per unit, due to the fall in wholesale energy prices.
The tariff from 1 July is now comparable with the UK OFGEM default tariff cap with Isle of Man domestic customers’ charges now 10% below the GB average price having previously been significantly below it.
The tariff change will mean that a domestic customer using 2,900 kWh per year will see their annual cost increase from £942 to £1,003 from July 2023. This compares to the OFGEM Default Tariff Cap just announced GB average of £1,137.
Chair, Tim Crookall MHK said: ‘I am extremely conscious of the pressure that high tariffs have on both individuals and businesses on the island which is why the board felt it was important to continue to involve external specialists to support the tariff setting process.
‘We will continue to monitor wholesale energy prices and react accordingly should changes be required. In the meantime we continue to predict a loss of approximately £50M for the year ending March 31 2023 financial year end and, despite our reserves being utilised to shield customers from sharp price hikes, we remain on schedule to repay bonds attributed to water and power infrastructure projects due in 2030 and 2034.’
