Manx Chamber of Commerce raises concern over electricity price hike

Electricity prices were frozen for six months in October

The Manx government should have done more the protect people and firms from a 51% hike in electricity prices, an Isle of Man business lobby group said.

Rises introduced by Manx Utilities (MU) in two stages mean an average customer's annual bill could go up by more than £380.

In a statement, the Chamber of Commerce said customers had been left shocked by "the level of increase".

But Treasury Minister Dr Alex Allinson said businesses were "resilient".

In its response to the forthcoming hike by the government-owned energy provider, the chamber also questioned the government's spending plans.

It said the Isle of Man budget for 2023 "ignored the likely cumulative impact" on small businesses of rising energy costs coupled with a minimum wage rise that was above the rate of inflation.

'Different approach'

A spokesman for the organisation, which represents more than 500 companies on the island, said it also had concerns about the increasing cost of the government's payroll and pensions expenditure, which has increased since the previous budget.

"A different approach to its priorities regarding fiscal policy... could have allowed the government to do more to protect residents, employees and businesses from electricity and gas tariff increases," he added.

In response, Dr Allinson said the budget was drawn up "in full recognition of the volatile economic situation across the world and the effect this may have on our local economy".

"Despite the recent challenges of inflation and workforce shortages our business community have shown an impressive level of resilience," he added.

Treasury and the Department for Enterprise would discuss the concerns raised when they next meet on 13 March, he added.

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