Manx Utilities’ five year plan will see increased standing charges, reduction in business discounts and an immediate jump in rates.
Due to go to Tynwald in December, the report also calls for a Sewerage Rate for the next financial year of 270.7 pence in the pound plus the prevailing rate of inflation over the preceding 12 months as measured by the Manx Consumer Price Index.
Designed to “provide Manx Utilities’ customers with certainty over electricity, wastewater and water prices over the coming years and keep changes in tariffs in line with general inflation and wholesale gas costs”, the proposed increases, it says, will also assure its own finances.
However, Manx Utilities has rejected some of the recommendations from Economic Consulting Associates, which was hired to undertake a review of its pricing strategy.
One such recommendation was a massive increase in the standing charge for electricity from 24.6p per day to 44.8p per day to cover more of the cost of being connected to the grid.
However, MU said it would have a “significant adverse impact on some customers”, instead it will continue to examine this, while warning that the “underlying economic principles applied by ECA are supported by Manx Utilities”.
Another change proposed would see the reduction of the discount of Water and Sewerage Rates for non-domestic customers, with the
discount reducing from the current 25% by 5% per year to 0%.
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