Electricity Prices to Increase by 30%

Electricity Prices on the island are going to increase by 30%, split into two 15% increases.

From April 1 there will be a 15% rise in electricity tariffs with a further 15% rise scheduled in July.

The initial price increase means that electricity charges for most domestic and commercial users will increase from 16.9 pence per unit to 19.4 pence per unit. A second increase in July would mean the cost for domestic and commercial customers would increase to 22 pence per unit.

Chair of Manx Utilities Rob Callister MHK said: ‘The board has been mindful of its responsibility to ensure it can cover the cost of generating electricity from the revenue it receives from electricity bills. With such a significant rise in global gas prices, there has been a need for difficult decisions around passing on cost increases to consumers.

‘I am pleased the Board has been able to work with the Council of Ministers to explore how to cushion consumers from such a stark rise in prices, although I am in no doubt that these price rises will cause difficulty for some.’

The Chief Minister has also commented on the increase, saying that ‘global price of oil, gas, petrol, and diesel have increased significantly in recent months with further sharp price spikes since Russia’s invasion of Ukraine’.

Alf Cannan said: ‘These rising prices mean that it is going to become considerably more expensive to heat and light our homes, to drive our vehicles, to operate businesses, and to run essential public services.’

He added: ‘The Council of Ministers has worked with Manx Utilities in the best interests of the island to determine a way forward that reflects the increased cost of generating electricity, but which also reduces the impact of such a sharp price rise.  I am grateful to the Manx Utilities board for their openness in engaging with the Council of Ministers during this very difficult period of volatility.

‘Phasing the increases in this way will buy some time to allow Government to better understand the longer term implications for the energy markets and to consider what broader economic support may be required for our community. The Council of Ministers is now urgently considering the impact of these difficult price rises.  We are committed to building a secure and sustainable future for our Island, and in doing so, now supporting those who will be hardest hit by a significant increase in the cost of living.’

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Treasury Minister David Ashford has said he will go to Tynwald in April to update members on ‘the Treasury’s assessment of the impact of this situation and any action considered necessary at that time’.