Aim to stabilise financial future of authority
Government is to write off £95 million of debt owed by the Island's provider of water, electricity and sewerage.
It's hoped the move, which has been touted for some months, will help to stabilise Manx Utilities' long term financial future.
Although the MUA's total debt stands in the region of half a billion pounds, cancelling the loans it owes to government will place it in a stronger investment position.
The decision, brought to Tynwald by Treasury Minister Alf Cannan, is also aimed at avoiding a sudden hike in charges to be passed on to consumers.
However, it will create a long-term government shortfall of approximately £6.5 million per year.
In the meantime, yesterday's also motion also called on the MUA to freeze its water and sewerage rates for the year ahead - and to determine a new, sustainable costing structure by October next year.
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