The Manx Utilities Authority has more than £4m of customers’ money held in credit, the chairman of the authority has confirmed.

Dr Alex Allinson (Ramsey) gave the figure in response to a written question from Julie Edge (Onchan) into residents’ use of MU’s credit and refund system.

Ms Edge had asked for the number of customers who have credit on their electricity account, the total credit held, how much interested it has accrued and how many customers have received refunds from their credit over the last three years.

Dr Allinson said that the total amount of credit on March 31 of this year stood at £4,405,248, down from £6,736,793 in 2017 and £5,494,595 in 2018.

He also revealed that the total number of customers who have credit with MU is 20,000, which is down from the 2017 figure of 20,111.

Of that 20,000, he said that 7,887 people were ’prepayment customers’, a rise from 7,728 in 2017.

Dr Allinson said: ’Credit balances arise on customer accounts for two main reasons. Firstly, prepayment customers have prepaid for their consumption and therefore generally have a credit balance on their account.

’Secondly, credit balances arise as Manx Utilities offers direct debit payment for electricity to allow customers to spread their quarterly invoices evenly over the course of the year.

’This involves agreeing a fixed monthly automatic payment amount that can help customers to budget for their costs and makes the process of paying their invoices easier.

’The monthly direct debit amounts is set based on an estimate of a customer’s annual usage and are reviewed and adjusted by Manx Utilities staff, either periodically or where large credit or debit balances are identified.’

Manx Utilities’ figures also revealed the number of refunds it has given. The total amount has increased over the past three years.

In 2017, 5,555 refunds were given to customers, rising to 5,645 in 2018 and 5,743 this year and the total value of the refunds for those years were £1,978,924, £2,164,083 and £2,605,765 respectively.

Dr Allinson said: ’The total value of credit balances was increasing in recent years and so Manx Utilities has made changes to its processes to reduce the value of credits. The results of this can be seen by the increased value of refunds and the reduction in the total value of credits.

’Customer credit balances are accounted in the same manner for other amounts owed by Manx Utilities. Similarly, customer debit balances are accounted for in the same manner as for other amounts owed to Manx Utilities.’ He also confirmed no interest is made on customers’ credit.