Electricity pricing, water & sewerage rates 2016Published On: Tuesday 23 February 2016 10:41
Manx Utilities has published its annual statutory notice to customers providing information on electricity pricing and water and sewerage rates to come into effect from 1 April 2016.
The statutory notice announces:
Unit electricity prices for domestic users will reduce from 16.25ppu (pence per unit) to 16.00ppu.
Commercial customers will benefit from a more substantial fall in their unit charges from 16.75ppu to 16.00ppu.
Domestic and commercial customers using electricity as their primary form of heating will see further reductions in their off-peak unit charges to 7.00ppu.
The standing charge will increase from 15.00 pence per day to 19.5 pence per day for domestic and commercial customers.
Extension of the Sustainable Generation Tariff to industrial customers who wish to install their own green generation systems (such as microwind turbine or photovoltaic) and will receive a competitive unit rate of 8.75ppu for all generation that is exported to the grid
A 2.3% increase in the water rate to 321.19 pence in the pound, based on Manx inflation to December 2015.
Confirms the increase of the sewerage rate at 92.00 pence in the pound, as approved by Tynwald in November 2015.
The revised charges are likely to represent approximate monthly increases of £0.85 to the average residential consumer’s electricity bill, £0.90 to the water rate for a residential customer and £3.85 to the sewerage rate for a residential customer.
The Chairman of Manx Utilities, Alfred Cannan MHK said:
“I am well aware of the financial pressures that exist for many consumers on the Isle of Man and we are doing our very best to keep prices at affordable levels. As many of our customers know we have high debt servicing costs from previous capital investments and a prudent gas hedging strategy. I can assure our customers that the historic capital investments in our generation and transmission infrastructure have delivered resilience and reliability levels that are well in advance of our competitors in neighbouring jurisdictions especially when contrasted with the United Kingdom energy position. We are monitoring very carefully the impact of falling commodity prices particularly in relation to gas and oil prices on the business and I hope this can be reflected in future tariff structures where practical and economically feasible.”
The overall electricity price increase has been structured to deliver a small decrease in unit charges for domestic and commercial with industrial customers seeing no prices increases in 2016/17.
Adjustments have been made to daily fixed charges to compensate for rises in fixed costs and are designed to more accurately reflect the value of operating a reliable and secure electrical infrastructure.
Working alongside key stakeholders, such as Government and large commercial/industrial customers to support economic growth, Manx Utilities understands the vital role played by key strategic market sectors such as the manufacturing and E-Commerce sectors in providing valuable employment opportunities on the Island, and the international competitive pressures they face. This is reflected in industrial electricity tariffs which have been maintained at constant price levels during the last four years ago in real terms and will be fixed for the next financial year.
The increase in the Sewerage Rate to 92.00p in the pound was accepted by Tynwald in November 2015 following a decision by the Manx Utilities Board to increase the Sewerage Rate in line with Manx Utilities’ Long Term Financial Plan. The Board further agreed to continuing the 50% Sewerage Rate discount to certain non-domestic properties, such as factories and commercial properties and extending this to include boarding houses and hotels. Religious and charitable institutions will not be charged for 2016-17 under the Rating and Valuation Act 1953.
Customers are encouraged to call Manx Utilities Customer Services Team on 687675 if they have any questions or concerns regarding bills or charges.