Manx Utilities says the island was more than 91% hedged against wholesale gas prices when US and Israel launched strikes on Iran, limiting exposure to subsequent market volatility.
Chairman John Wannenburgh said the authority held a “very strong forward gas position” as of February 28 2026, covering the remainder of the current financial year.
Following the escalation, spot gas prices rose sharply from 77 pence per therm on 27 February to as high as 170 pence per therm in early March.
“Our high hedge level significantly reduced exposure to this volatility,” Mr Wannenburgh told members.
“Through prudent investment management, and at this time, I would like to pay respect to the team at the MUA for doing exactly that through financial discipline.
“Our overall exposure to this move has been less than £50,000 until the next financial year.”
Tariffs
For the 2026/27 financial year, the authority was already 70% hedged and has since increased that to over 88% as of March 16.
Responding to a question from Arbory, Castletown and Malew MHK Jason Moorhouse, Mr Wannenburgh confirmed there was “no immediate effect on tariffs” but warned the situation remained under review.
“It is reasonable to assume that the longer the conflict continues for, the higher wholesale gas prices will be and the longer it will take for prices to return to previous levels,” he said.
Onchan MHK Rob Callister sought reassurance over the remaining 12% exposure, recalling when prices rose from 50 pence to 800 pence per therm in 2022.
Mr Wannenburgh said the situation was being “monitored very closely” and confirmed the authority’s in-house trading team continued to actively manage the hedging portfolio.