Manx Utilities’ Pricing Review | Financial Statements - Year Ended 31 March 2024
Manx Utilities’ Pricing Review | Financial Statements - Year Ended 31 March 2024
The Manx Utilities’ Pricing Review for 2025-2030, is being considered by Tynwald for approval in December, it will provide a firm foundation for the continued stabilisation of Manx Utilities’ finances, and provide certainty to customers about tariff levels while allowing the organisation to remain on schedule to meet its Bond repayments in the 2030s.
Manx Utilities is aware of the financial pressures its tariffs put on customers and will continue to monitor energy prices and keep tariff levels under review; while also progressing feasibility work on energy decarbonisation schemes, plans for wastewater treatment in Peel and Garff, and working on its Water Resources Management Plan.
Manx Utilities’ pricing review proposes the continuation of inflation-only increases for wastewater and water prices for domestic customers over the next five years. Electricity prices will also increase by inflation and are subject to adjustments for significant changes in energy costs.
An evaluation undertaken by ECA considered the economic tariff levels required to meet the costs of providing services. This work identified that electricity standing charges are significantly lower than those in the UK and do not cover the cost of maintaining a connection to a customer, however Manx Utilities is conscious of the impact that standing charges have on customers who consume low volumes of electricity and therefore increases have been limited for standing charges to match inflation.
ECA also made several recommendations that propose changes for certain customer groups to address possible concerns with specific tariffs, for example, further work is proposed in respect of considering a social tariff. These recommendations will be considered over the next few years as part of the pricing review.
In addition to the work undertaken by ECA, Manx Utilities has held customer focus group sessions to better understand customer views of Manx Utilities and its electricity tariffs. These sessions were generally positive with Manx Utilities being noted as a trusted and reliable service provider. There was a lack of awareness that Manx Utilities does not generate profits to provide a financial return to its shareholder and is essentially a ‘not for profit’ organisation. Customers also expressed a desire for more choice in respect of tariffs and this will be considered further, for example through the introduction of a more flexible ‘time of use’ tariff.
Manx Utilities’ Annual Report and financial statements for the year ended 31 March 2024 has also been published on the Tynwald website prior to being laid before the December sitting.
The Annual Report is available to view and download from the Register of Business, along with the financial statements of its two subsidiary companies, e-llan Communications Limited and Manx Cable Company Limited. The results for the subsidiary companies are included in Manx Utilities’ report, and Manx Utilities’ results are included in the Isle of Man Government’s Annual Financial Statements and Report.
The Annual Report shows a small deficit reflecting that Manx Utilities’ finances have begun to stabilise following the challenges experienced because of extremely high wholesale energy prices during the peak of the energy crisis in 2022-23. While this is a significant improvement, wholesale energy prices remain double of what they were before the energy crisis, and ongoing inflationary pressures were felt across the organisation throughout the year.