Manx Utilities (MU) has announced it will be reducing the current electricity unit rates by 5.1% to 28.5p.
This follows from MU not applying the proposed inflationary increase of 5.7% to electricity unit rates (31.7p) from April 1, 2024 as previously indicated.
However, electricity standing charges, water and waste water charges will increase by 5.7% to 24.6p per day (from 23.3p).
Electricity
The plans to introduce an increase have been reviewed and amended to reflect the reduction in wholesale natural gas prices, with these cost reductions being passed back to customers.
The change will be applied to customer bills from April 1, 2024 for electricity consumed and mean the average domestic customer’s electricity costs will reduce by approximately £50 a year.
The utility has recently published its audited financial statements for the year ended March 31, 2023 showing a loss for the year of £42 million, due to the shielding of customers from the full extent of wholesale energy cost increases.
Repay bonds
This was an improvement over the £50 million deficit previously expected and the organisation remains on schedule to repay bonds attributed to water and power infrastructure projects due in 2030 and 2034; despite £20 million being withdrawn during the financial year to avoid further customer increases to tariffs.
MU says it will continue to regularly review wholesale energy costs and electricity tariffs and will once again be engaging with independent external specialists to update its pricing strategy.
It says this will ensure tariffs continue to remain as low as possible for its customers whilst still meeting its financial obligations to maintain essential services.
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