ELECTRICITY prices have been frozen for residents on the Isle of Man until March 31 next year.
The island’s government Treasury announced the support yesterday, as part of a wider package to help its roughly 85,000 inhabitants through the winter.
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Electricity will stay at 22p per unit into next spring, shielding households from a predicted jump to over 37p from October 1, when the new price cap comes into force.
The price freeze is being funded by the Isle of Man government which will give Manx Utilities, the island’s energy provider, an up to £26million loan that will be repaid over 20 years.
Dr Alex Allinson MHK, an Isle of Man Treasury minister, said: “We are shielding households, businesses and organisations from what would have been a sharp and sudden increase in electricity costs of between £16 and £26 million by March next year.”
She added: “The aim here is to flatten the curve on the cost of living increases and give households a degree of certainty and time to adjust to what may be a longer term set of challenges.”
The freeze on electricity prices is part of a wider package of support from the Isle of Man local government.
It includes targeted support payments in December for those receiving child benefit and on low incomes, capping bus fares for three months from November 1 and “accelerating” an £8million programme to improve energy efficiency in homes.
The announcement comes after a number of energy providers backed a plan to freeze bills this winter.
The bosses of Octopus Energy, Ecotricity and Utilita have all thrown their weight behind the tariff deficit fund scheme.
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Under it, loans would be provided to energy companies to cover the cost of higher wholesale prices in the short-term.
Then the loans would be paid back over 10 years, through consumers’ energy bills or tax.
Energy prices have shot up in recent months partly due to the war in Ukraine, but also economies emerging from the coronavirus pandemic.
Russia is the world’s largest natural gas exporter but the country has slashed supplies to Europe since the onset of the war, leading to wholesale prices surging.
Consultancy Auxilione has predicted energy bills could hit £6,500 next year.
The firm revised its earlier forecast of £6,089.
What help can I get with my energy bills?
If you’re worried about how you’ll pay your energy bills, there’s a range of support on offer.
That includes the £400 energy rebate which is being dished out to millions of households.
Plus, there’s the Household Support Fund, Energy Supplier Grants, Council Tax rebate and more.
We previously reported on all the help and free cash you can apply for to help with rising energy bills.
You can always contact your supplier as well.
Energy companies have a regulatory responsibility to support customers who are struggling, or that may be vulnerable, due to age or health reasons.
If you’d rather not take this route, these organisations are here to help:
