MUA Chair Insists Price Drop is Good News

The chair of Manx Utilities has insisted islanders will be better off following a price drop, even with the daily standing charge going up.

In a reversal of a planned 5.7% increase, Manx Utilities has said the drop in global gas prices means it can lower rates by 5.1%.

However, while this drop from 30p per unit to 28.5p per unit has been welcomed by some, the 5% increase in the standing charge, up to 24.6p a day, has been criticised.

In Keys this week, Jason Moorhouse (Arbory, Castletown and Malew) quizzed John Wannenburgh on this, with the latter saying that this board of the MUA now projects a reduction of £10m in wholesale costs throughout the year, which it had chosen to pass onto islanders.

While Mr Wannenburgh was keen to say it is a ‘good news story’ for the island, Mr Moorhouse wasn’t so sure, saying he was ‘quite concerned for the people out there who are actually having to pay this money’.

He added: ‘The headline story that there’s going to be paying less in general terms for the actual electricity use is positive, but in terms of those people who decide not to use any electricity, and still have to pay the standing charge, that’s quite a significant sum.’

Mr Moorhouse also noted that the standing charge has risen by 50% since Chief Minister Alf Cannan was chair of the MUA back in 2014.

The Douglas North MHK replied that when the price of petrol goes down, road tax doesn’t.

Chris Thomas (Douglas Central) told members ‘it has never been quite clear to me what the policy is on standing charges electricity’ and asked Mr Wannenburgh to circulate what plans the MUA has for its standing charge.

Mr Wannenburg noted that the amount paid on island, just over £94, was significantly lower than the UK’s £203, but said he would do a review and report back.

DHSC Minister Lawrie Hooper had the final say on the matter by pointing out that the rise in standing charge would result in islanders paying £4.70 more over the next financial year than this year.

Gef: Not to belittle it, but the price of a pint of Moretti in the Manx Arms £5.70, so it’s not so bad.