Electricity prices rise by 16.9%

Treasury Minister Allan Bell said the MEA had no choice

Electricity prices on the Isle of Man are set to rise by more than 16%.

Householders will see their tariffs increase from 1 September, Manx Electricity Authority (MEA) said.

The cause of the price hike is a combination of higher raw fuel prices and continued extra charges to meet the MEA's loans deficit.

Treasury Minister Allan Bell said the MEA now had to pay more for its gas supplies, so had "no choice" but to put up their prices.

"Unfortunately the situation has caught up with us now, where once again they are obliged to go back on the international market to buy gas for the forthcoming period," he said.

"The gas prices have gone through the roof, and we have had to pay very much more for our gas supplies.

"Although we have done our best to keep the tariffs down as low as we possibly can - and there is already a substantial element of subsidy in the electricity price - it has not been possible to absorb these huge increases.

"Therefore the MEA has had no choice but to announce that the tariff is going up by some 16%."