MUA surplus £1m accounts reveal

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Manx Utilities - the state-owned organisation that runs the island’s electricity and water services - made a surplus of £1m last year.

Its accounts are being laid before Tynwald on December 13.

In 2014-15 it recorded a deficit in 2014-15 of £3 million primarily due to reduced fuel costs following falls in the market prices of natural gas.

The MUA says that its financial statements show that it remains slightly ahead of the financial plan that supported the merger of Isle of Man Water and Sewerage and Manx Electricity approved by Tynwald in January 2014.

The MEA was plunged into debt after taking out unauthorised 2003/4

The revenue increase of £2 million is mainly attributable to the sale of the former Isle of Man Water and Sewerage headquarters.

Inflationary increases in both water and electricity charges were offset by reductions in sewerage grant funding provided by the Treasury and reductions in electricity volume sales of 0.4 per cent. Operating costs reduced by £2 million, due to general costs control and no maintenance work being required on sub-sea assets during the year.

The bond repayment fund (to repay the bond debt totalling £260 million) has increased to £47 million from £33 million in the previous year; however net debt has increased slightly by £3 million to £509 million under the new accounting basis.

The capital expenditure was within budget and totalled £19 million.

This included further expenditure on sewerage schemes (to improve the efficiency of the Meary Veg treatment works and to construct a treatment works for the north of the Island), capitalised maintenance at Pulrose Power Station and the ongoing improvement of the electricity, water and sewerage networks.

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