Manx Utilities forecasting £45m deficit for 2022-23

Chairman says authorities reserves have been depleted over last two years

Manx Utilities is forecasting a £45m loss over the last financial year.

The board says its been dealing with increased wholesale costs and depleting reserves over the last two years.

The government-owned organisation, which oversees the Island's electricity and water supplies, has published its annual plan for the 2022-23 year, which includes an update on the authority's finances.

Recently-appointed chairman Tim Crookall says in his report that increasing natural gas prices have cost the board £40m, and it's worked to prevent this being passed on to the customer.

However, this has resulted in a hit to Manx Utilities' reserves, and Mr Crookall says it's no longer possible for the authority to continue to limit the impact on Manx residents.

While the report shows a £45m operating deficit, it had budgeted for a £50m loss, while a deficit of £9m is forecast for the 2023-24 financial year.

It comes less than a month after Manx Utilities published its accounts for the 2021-22 financial year, confirming a £30m loss for that period.

Looking to the year ahead, the plan confirms work continues to increase renewable energy provisions on the Island, with a view to have wind and solar power in place by 2026.

It also highlights the need to increase resilience to the Island's water supply, outlining plans to replace mains which are prone to bursts.

The plan is being laid before Tynwald later this month.