Manx Utilities confirms April 2026 tariff update
Published: 05 March 2026
Manx Utilities will introduce a 1.5% increase to electricity charges and a 2.9% inflation-linked increase to water and wastewater charges from 1 April 2026.
This electricity uplift is below the 2.9% CPI rate that would normally apply under the five‑year Pricing Strategy approved by Tynwald, reflecting the Board’s decision to limit the impact on energy customers while still supporting the financial resilience of essential services.
Supporting customers through challenging years
Manx Utilities recognises that energy costs in recent years have placed real pressure on households and businesses. During the global energy crisis, Manx Utilities took significant action to shield customers from sudden bill shocks, absorbing around £40 million of exceptional wholesale costs rather than passing them directly through to bills. Government also approved a £26 million support loan, which ultimately did not need to be drawn. These decisions helped protect customers during an exceptionally volatile period.
Although market prices have eased from their peak, they remain above pre‑crisis levels. Because most Isle of Man electricity is generated using natural gas, wholesale energy prices and geopolitical uncertainties continue to influence the cost of supplying power to the Island.
Why an increase is needed now
To manage risk and smooth fluctuations, Manx Utilities purchases a significant proportion of natural gas in advance. This helps protect customers from short‑term price spikes and provides more stability in planning energy costs. Approximately 75% of natural‑gas requirements for 2026-27 have already been secured under this approach.
The Fuel Cost Adjustment — introduced during the height of the crisis — remains under quarterly review and will be reduced or removed when sustained market conditions allow.
Manx Utilities is aware of the recently announced reduction in the UK OFGEM Default Tariff Cap, due to changes from the UK budget where certain costs included within electricity tariffs are now to be funded from central taxation. Currently Manx Utilities’ electricity tariffs are below the level of the Default Tariff Cap but will be above the cap from April following the reduction in the UK cap. UK electricity tariffs are updated on a quarterly basis and Manx Utilities seeks to smooth the volatility from wholesale energy prices by seeking to only make annual tariff changes, to provide greater certainty of costs for customers. The April 2026 update helps ensure essential services remain reliable and financially sustainable.
Chair of Manx Utilities, John Wannenburgh MHK said, “Through careful financial control and disciplined management, the Board has been able to limit this year’s electricity tariff update from the CPI‑linked 2.9% to a more manageable 1.5%. We will continue to review tariffs responsibly, always mindful that we operate as a community utility serving households and businesses across the Island.”
What will change from 1 April 2026?
Electricity
- Unit rate: 29.5p/kWh
- Standing charge: 25.5p/day
- A typical domestic customer using 2,700 kWh per year will pay £937 per year (an increase of +£14 (+£1.20 per month) from £923)
Water
- Charges rise by 2.9%
- The non‑domestic discount reduces from 20% to 15% as set out in the Pricing Strategy
Wastewater
- Charges rise by 2.9%
Manx Utilities expects electricity charges to remain broadly in line with average UK levels referenced by Ofgem, recognising that bills vary across regions and tariff types.
Help is available
Manx Utilities understands that some customers continue to face financial pressures. A range of support remains available, including:
- SmarterPAYG prepayment (same tariff as credit customers)
- Flexible payment plans
- Support from the Home Energy Officer to help reduce energy use and manage household costs
Tel: 687675
Freephone: 0808 1624 115
Email: accounts@manxutilities.im