No further price hike expected for electricity bills

There are not expected to be significant increases in electricity bills in the wake of the Iran war due to existing purchasing arrangements, the Isle of Man's chief minister has said.

Alfred Cannan said government-owned Manx Utilities was "well hedged" for the next year due to purchasing made at a "settled price".

Cannan said the situation with gas supply on the island was "very different" to that which arose at the start of the war in Ukraine, which saw the government heavily subsidise electricity prices as the wholesale price soared.

However, he warned the "biggest impact" in the short term would be on oil and fuels.

Island fuel provider Manx Petroleum this week warned its customers that it was "unable to provide indicative prices for any new orders" due to volatility in global prices.

It said while the island had so far been insulated from the increases seen in the UK, unless the situation stabilised soon, "our next shipment of fuels is likely to arrive at a significantly higher cost than the last".

Cannan told Tynwald meetings of the National Economic Strategy Board would now be held weekly rather than monthly to monitor the "rapidly" evolving situation and ensure any potential economic, social and security impacts were considered in a coordinated way.

The chief minister said as well as Manx Utilities, it was also in contact with the Islands Energy Group – the parent group of the island's privately-owned monopoly gas provider, Isle of Man Energy – to see whether there would be any cost variables coming forward.

"We also understand that they have made quite significant forward purchases to lock in the price of gas at the pre-war pricing," he said.

Cannan told Tynwald while it was "too early for me to give firm direction" on whether support would be needed this time round, it was "clear already that our concern will be for the most vulnerable in our society".

There were "mechanisms through the winter fuel payments to identify where any support may need to be directed", he explained.

However, Cannan said – given the current uncertainties - the government should "not be forced into any short-term decisions or knee-jerk reactions until we can actually see a clearer picture in as much as that is possible".

The government would "continue to act calmly, prudently, and in the best interests of the people of the Isle of Man", he added.

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