The Manx Utilities Authority has not used any of the £26 million allocated from the government to assist with electricity bills.

Chairman of Manx Utilities Authority, Tim Johnston, said in the House of Keys last week.

In September last year, the government agreed to cap the electricity prices until March 31, 2023, with the loan allocated to support this price freeze.

The MHK said: ‘The wholesale gas market remains volatile. Of the £50.5 million budgeted deficit in the current year, we have had a deficit of £48.4 million, which is slightly lower than our budgeted deficit.

‘Our financial forecast indicated a £70 million deficit, but as gas prices have been lower than forecasted, it has not been necessary to use the £26 million loan.

‘This does not mean that the gas crisis is over.’

After this, Arbory, Castletown and Malew MHK Jason Moorhouse asked if the price freeze could be extended past March 31.

Mr Johnston said: ‘Whilst there have been reductions in short-term energy markets recently, the wholesale gas projections remain significantly higher than previous long-term average prices, this means it is unlikely that Manx Utilities can continue to absorb the level of excess energy costs expected for the next 12 months.’

He added: ‘Council’s decision to freeze gas prices has cost Manx Utilities £26 million in revenues or gone, but has helped to shield customers over a very difficult period of time.’

Mr Johnston explained that because the wholesale price has been lower than expected, ‘Manx Utilities has had the ability to absorb the existing wholesale price within its own facility at this stage, but I have to stress this is not a sustainable position’.

He said that there is currently a review taking place to discuss MUA’s costs to decide what happens on April 1, when the price cap is set to end.