Isle of Man electricity prices to be frozen for six months

Electricity prices on the Isle of Man will be frozen this winter, the treasury minister has said.

Alex Allinson said the price cap on electricity supplied by government-owned Manx Utilities would remain in place until 31 March.

He said the move would shield households and businesses from a "sharp and sudden increase" in electricity bills this winter.

His announcement comes following a 43.9% increase in the price of gas.

Tynwald members will be asked next month to approve a loan of up to £26m from treasury reserves to Manx Utilities to cover the shortfall.

This loan will be paid back over 20 years.

Without such intervention, Manx Utilities said electricity prices would have had to rise by at least 70% from October to cover the soaring wholesale cost of the gas used to fire the island's main power station.

This would have cost customers an average of £500 a year.

Dr Allinson said: "The aim here is to flatten the curve on the cost of living increases and give households a degree of certainty and time to adjust to what may be a longer term set of challenges.

"Providing a loan with a 20-year repayment means that the costs of record electricity prices expected this winter can be factored into bills over a much longer period, cushioning consumers from what would be, for many, crippling price rises."

Other measures being brought in response to the rapidly rising cost of living include a three-month £2 cap on single bus journeys, and an acceleration of an existing £8m Green Living Grant Scheme to help people make their homes more energy efficient.

A third round of payments for those claiming child or income related benefits will also be rolled out in December to help families and those on lower incomes.

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