Manx Utilities (MU) says it is ruling out significant increases in electricity tariffs unless there are exceptional changes to wholesale market prices.

But the sewerage rate is set to rise by more than inflation.

Tynwald next month will be asked to approve a pricing strategy for electricity, wastewater and water charges for the coming five years.

It follows a review by consultants Economic Consulting Associates (ECA).

Tariffs will rise based on annual CPI inflation, which this year was 2.2%.

There will be adjustments to electricity tariffs for changes to wholesale gas prices, and MU says it is hoped reduction can be applied when wholesale energy costs go down.

MU said in its report to Tynwald: ‘Whilst the energy crisis has led to significant financial pressures on both Manx Utilities and its customers, seeking to link tariffs to annual inflationary changes will provide certainty to customers that significant price increases will not occur unless there are exceptional changes to wholesale market prices.’

But one of ECA’s recommendations is not being followed.

The consultants proposed significant increases to the electricity standing charges from 24.6 pence per day to 44.8 pence per day to ensure they cover more of the cost of a customer being connected to the electricity supply network.

But MU said such a change would have a significant adverse impact on some customers, and potentially this would affect low-income customers - who are more likely to consume lower quantities of electricity - more than others.

The authority is, however, proposing an above inflation increase in the sewerage rate from the current 264.9p in the pound to 270.7p plus the prevailing rate of inflation from April next year.

Further rises in line with inflation will follow in the same month in 2026, 2027, 2028 and 2029.

There will also be a further cut in the discount on water and sewerage rates for non-domestic customers, with the discount reducing from the current 25% by 5% per year to zero.

The sewerage rate was dubbed the ‘toilet tax’ when it was first introduced in April 2014, initially as a £50 fixed sum, rising to £100 the next year before it was replaced with a ’fairer’ system based on property rateable values.

Tynwald approved an inflationary increase of 5.7% for 2024, taking the rate to 264.9p.

In line with the ECA recommendations, MU has ruled out universal metering of domestic water supplies. But it says water metering is likely to be recommended as part of a water resources management plan currently being drawn up.

It says that it is a key way of customers being encouraged to reduce their consumption through minimising wastage.