The leader of a political party has said that the decision by the Manx Utilities Authority (MUA) to decrease what it pays for green energy sources is ’a backwards step’.
Leader of the Green Party, Andrew Langan-Newton was referring to a letter received sent by the MUA to residents signed-up to the Sustainable Generation tariff.
The Green Party stated: ’Many private residents and businesses in the Isle of Man who produce renewable electricity from solar panels were told that the MUA will be reducing the price it pays to buy renewable energy from the current price of 9.2p per unit, to 7.2p in 2022 and potentially as little as 4.7p a unit in the future.
’The Isle of Man Green Party decries the inexplicable decision of the MUA as a backwards step and an act contrary to the Government’s and Tynwald’s declarations of a climate emergency nearly two years ago.’
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The party also said that by law, the MUA ’has a monopoly on the commercial supply of electricity in the Isle of Man, meaning that there is no alternative available in the island for residents who want to buy renewable energy.’
MUA’s Sustainable Generation tariff for customers wishing to install renewable, private generation such as solar panels is a ’bolt on’ which can be added to any existing customer tariffs and currently limited to 10 kWh private generation capacity for domestic customers, and 50 kWh for commercial customers.
The average amount of electricity exported to MUA by domestic customers on the Sustainable Generation tariff was 1,565 kWh per customer in 2020.
There are 122 customers on the sustainable generation tariff currently.
Mr Langan-Newton commented: ’The decision of the MUA appears to be intending to reduce the competition of green solar power energy to the fossil fuel electricity the MUA is generating at the Pulrose Power Station. Solar panels are falling in price and we urgently need more green energy.
’The Chief Minister must intervene to direct the MUA and Minister [Tim] Baker to the climate emergency declaration.’
The MUA said in response: ’The average domestic reduction is estimated to be £16 per year in the first year and £32 per year in the second year. The pricing strategy is due to be reviewed in 2023 and therefore there is no decision or commitment beyond next year.
’We will continue to monitor the feedback on the tariff charge and its impact on the installation of small private renewable energy installations.’
The MUA said it does not make a profit of 7.7p/kWh on electricity sold - it maintains an electricity network and other support functions, such as a customer service team, in order to ensure customers have access to electricity when they require it.
This includes ensuring customers with private generation have access to electricity when their private installations are unavailable.
It added: ’MUA is supporting the government’s Climate Action Plan and is committed to taking significant steps to ensure government’s climate targets are met, at the lowest cost for customers and is not seeking to capitalise on its position.
’Tynwald significantly reduced MUA’s debt in October 2017 and so Manx Utilities is financially secure and it’s financial plans show that it is still able to repay its debts as they fall due.’