The Manx Electricity Authority’s Annual Report and Accounts for 2011/12 will be laid before Tynwald this month.
The accounts show that despite there being a 2.6% reduction in electricity sales volume on the Island, the MEA exceeded its financial targets with a reduction in its deficit by £3.6m from the previous year. The deficit was £6.4m against £10m in 2010/11.
Turnover for the year was £76m, an increase of £1.1m, mostly due to the removal of the standing charge rebate of £42 per customer. There were no other tariff increases introduced during the year.
Operating costs were £65m compared with £69m in the previous year.
Work on major assets in the year included some strengthening to key network assets as well as a major overhaul on the Gas Turbine plant.
On behalf of Tynwald, the MEA successfully delivered an extension to the gas network, bringing a natural gas supply to Peel, Ramsey and the South for the first time. The first properties in Ramsey were converted in February 2012 and the works remain on target for completion before winter.
However, following a full review of the retail operation during the year, the MEA Board concluded that the retail division was not able to return to profit and agreed to a withdrawal from retail operations during 2012/13.
The estimated costs of terminating these operations (£1.7m) have been included in the accounts.