On January 24 in the House of Keys, MHK Jason Moorhouse asked the current Manx Utilities Authority chair, MHK Tim Johnson, how much of the £26 million loan allocated to the MUA to keep electricity prices fixed through the energy price emergency was used?

The answer was that the MUA had realised a debt of £48.4 million for the year, but very importantly NONE of the £26 million had been drawn upon.

Mr Johnson then revealed that ‘for the current tariff of 22 pence per kWh retail to remain sustainable, the wholesale price of gas, needed for generating electricity, would need to remain around 150 pence per therm, well below the 245 pence per therm included in the original budget’.

Source is Hansard.

We know that of today’s date the average UK wholesale price of natural gas is sitting at 124 pence per therm.

Approximately one week ago the average UK wholesale price of gas was sitting at 136 pence per therm.

Basically there has and continues to be a sharp downhill trajectory of wholesale price since October 25, 2022, when the average wholesale price of gas was 641 pence per therm.

Following a mild winter, spring approaching, demand lowering, other markets opening up their supply lines and demand for Russian gas lowering means we should be hopeful of continued good news on the gas wholesale markets front.

However it is only good news if it reflects in the retail market.

In the UK it is widely expected that energy customers will once again be able to shop around again for the best deals later in the year because of the continued good news in the wholesale market.

Source is The Guardian, Monday, February 20.

In the light of what is written above, questions need to be asked to the MUA as to why there is a threat of a huge increase in the price of electricity?

A recent report I read mentioned an eye-watering 70% (AT LEAST) increase for domestic tariffs.

Why are prices forecasted to rise when wholesale prices are now at May 2022 levels?

Why did the MUA not draw down on the Treasury loan?

Is the £26 million still available and could it be used if necessary to keep prices down?

Can the MUA still justify different tariffs to different customers at different times of day including electric cars at half the current domestic tariff?

Was spending £18 million on smart meters all at once really necessary and most importantly publicly explain why in the face of downward wholesale prices they need to raise the retail price?

Barry Murphy

Broogh Wyllin

Kirk Michael

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