Isle of Man businesses welcome 'certainty' of electricity price cap

Isle of Man electricity prices will remained capped at current levels until March next year

A six-month electricity price cap has given businesses "some certainty" for the future, the Isle of Man Chamber of Commerce has said.

The Manx government is set to ask Tynwald to back the spending of up to £26m to hold prices at current rates until March next year.

The chamber's Carol Glover said the freeze would allow firms "something to budget for" as other costs rise.

But she warned small businesses remained under "immense pressure".

Under the government's plan, public electricity provider Manx Utilities will receive the money as a loan to freeze prices for six months, which will be repaid over a twenty-year period.

A chamber of commerce spokesman said the "hefty investment" was welcome for employees who did not qualify for benefit-related support.

It would particularly help large electricity users like food retailers and data storage companies, he added.

'Vicious cycle'

The cap comes as inflation hit a record high on the Isle of Man and as gas customers prepare to see a 43.9% hike in bills from September.

Ms Glover said though the freeze was welcome, many small businesses were still caught in a "vicious cycle" of trying to keep staff employed and meet customer demands while fixed costs continued to rise.

Small businesses, which make up about 98% of all firms on the island, would now need to look at how they could adapt to deliver their services differently, she added.

Ms Glover said many were struggling with staff shortages and more should to be done to grow the island's workforce, including cutting size of government and encouraging more people back into work.

She also confirmed the chamber has met with Manx Gas to discuss arranging a specific tariff aimed at small businesses in a bid to keep cost under control over the winter.