Isle of Man electricity cap to allow for 'manageable' hikes in 2023

The loan will help pay for gas to fire the island's main power station in Pulrose

A six-month Isle of Man electricity price freeze will allow "more manageable" increases to be introduced next year, the chief minister has said.

Tynwald will be asked by the government to approve a loan of up to £26m to Manx Utilities to hold prices at current rates until April next year.

Alfred Cannan said "harmful" hikes before winter could have seen businesses collapse and jobs lost.

A cap will give the island a "fighting chance" amid rising costs, he added.

Manx Utilities previously said without the freeze prices would have had to increase in the autumn by at least 70% to pay for the soaring cost of wholesale gas, used to fire the island's main power station.

This drastic rise would have caused "significant harm" to the public and businesses, and delaying increases to a time when consumers are "potentially using less" was the right decision, Mr Cannan said.

The loan to the authority, if approved by Tynwald, would be repayable over 20 years, and would be recovered "through the right pricing structures", he added.

David Talbot said the Manx Credit Union has seen more people seeking financial help

Gas customers are facing a 43.9% hike in gas prices this month, while inflation is at record highs on the island.

The Manx Credit Union has offered its 1,200 members dedicated energy saving fund accounts as a result, to help people who are feeling anxious about bills ahead of the colder months.

Chairman David Talbot said many had suffered "enormously" during the pandemic, and there had been an upsurge in people seeking financial help in the last year.

The credit union's membership has grown from 900 to 1,200 customer over the past 12 months.

Mr Talbot said the "more people can save then the more resilient their finances are, and the better able they are to cope".