Manx Utilities records £42 million loss over past year

Annual report indicates consumption of natural gas as primary reason

Manx Utilities has recorded a £42 million loss over the course of 2022-2023.

The authority has published its annual report.

In his opening statement, former Chairman Tim Crookall says the main issues over the past year 'have been the cost-of-living crisis and the impact of high wholesale energy prices'.

He says the authority has sought to limit the impact of those cost increases on customers as much as possible - adding that despite having to implement a 30% tariff rise at the start of the year, the company did so 'with a phased introduction to reduce the immediate impact on customers'. 

Manx Utilities argues the consumption of natural gas that was previously purchased and revalued at 31 March 2022 has resulted in the requirement of reporting significant financial losses. 

This included losses of £36 million for natural gas consumed during 2022-23.

These losses, which are largely reversing revaluation gains reported in 2021-22, resulted in an overall deficit of £42 million being reported for the year.

However, the company argues that when financial adjustments are excluded, the underlying deficit for the year is reduced from £42 million to a deficit of £14 million. 

As for this year, people on the Island will be aware of another impending electricity price rise with the standard domestic rate tariff to increase from 30 pence per unit to 31.7 pence per unit from 1 April 2024.

​You can read the full report HERE.