'Certainty and security' assured as the Isle of Man Government approves winter electricity price cap
The Isle of Man’s Government, has approved cost-of-living support for the winter.
A loan of up to £26m to state energy provider Manx Utilities was unanimously supported during a sitting on Thursday.
The loan will be used to freeze electricity prices until March and the capping of bus fares.
Speaking during an extra sitting of Tynwald, Treasury Minister Alex Allinson MMK said: "By freezing electricity prices at current levels, we can provide certainty and security for everyone who lives and works here".
When asked how much it would cost, the Minster said it would be "difficult to calculate" due to variations in energy prices.
The Minster later predicted that the loan taken out would "add £17 a year to the average household bill over the next two decades".
The Government had previously announced that electricity prices will be frozen until March 2023 due to the cost of living crisis.
Volatility in energy markets has seen a surge in the cost of fossil fuels since the Russian invasion of Ukraine in February.
The majority of the Island’s electricity is generated from gas, and global price rises mean that Manx Utilities would have needed to increase tariffs by a minimum of 70% this autumn.
The loan, to be taken from treasury reserves, will be repaid over a twenty-year period with a 2% interest rate.
The package, put forward by Treasury Minister Alex Allinson, was backed unanimously. But, during the three and a half hour some MHKs raised concerns.
Tim Glover MHK spoke of his uneasiness on passing debts down to future generations.
The MHK for Arbory, Castletown and Malew said he was "anxious" about "the future viability of an organisation already saddled with debt".
Former Health Minister, David Ashford MHK, told the House of Keys that he would have preferred targeted help for low and middle income households.
"For many it's a not a cost of living crisis anymore, it's a cost of living tsunami".
He also said that the Government should stop using a "blunt tool" to determine cost of living support.
He called for a more "data driven" and "nuanced approach" in ensuring that the support helps the families "most in need".