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We’re in a Different Position to UK
He was speaking this morning’s Public Accounts Committee hearing.
Dr Alex Allinson has said the type of intervention proposed by UK PM Liz Truss into energy markets would be very difficult on the island.
He was speaking this morning’s Public Accounts Committee hearing.
Treasury has already announced that taxpayers will lend Manx Utilities up to £26m to freeze electricity tariffs this winter, while warning that prices will have to go up in March.
When asked by Douglas South MHK Claire Christian as to why the foundation of the island’s support scheme has been on electricity instead of oil and gas, Dr Allinson said that part of the issue with the current energy market was that ‘people are experiencing inflationary pressures in different ways and that’s why making a universal intervention is extremely difficult’.
‘We’re in a different situation to, for example, the United Kingdom. on the adjacent isle, about 83% of people heat their homes with gas, on the Isle of Man its around about 51% and far more people use oil on the island, particularly those in rural communities.
‘Oil prices seem to have peaked and the price at the pump has gone down a little bit, however because of the oil importing is done in batches, sometimes those decreases don’t feed through to individual consumers and most people who use oil for heating are still experiencing significantly more expensive bills than before.’
Dr Allinson added that the decision was taken to engage with Manx Utilities because it is the only universal fuel on the island, so had a greater opportunity to benefit more people.
He also confirmed that Treasury will be looking at other ways to help islanders hit hard by energy bills in the coming weeks and months.
