Manx electricity bills to rise by 30% over global gas prices

Electricity prices on the Isle of Man are to rise by 30%, Manx Utilities (MU) has announced.

The increase will by applied in two increments of 15%, one in April and then one in July.

The price hikes come on the heels of a 27.5% rise in Manx Gas bills, which was approved by Tynwald in October.

Current volatility in the global wholesale gas market has been cited as the reason for both electricity and gas price rises.

MU had previously warned the rising cost of natural gas, used to produce most of the island's electricity, could lead to an increase of up to 39%.

Under MU's agreed pricing strategy, which is linked to inflation, water and sewerage rates will also rise by 5% next month.

Chief Minister Alfred Cannan said prices of oil, gas, petrol, and diesel had "increased significantly in recent months with further sharp price spikes since Russia's invasion of Ukraine".

"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.

Mr Cannan said the government-owned electricity provider had worked with the Council of Ministers to "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".

The phased increase would "buy some time" for the government to better understand the "longer term implications for the energy markets" and to consider what broader economic support may be needed, he said.

Treasury Minister David Ashford said global volatility would bring a "substantial increase" in the cost of living and an assessment of that impact and any necessary action would be presented to Tynwald in April.

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