Manx Utilities says ‘strong hedging’ strategy limits exposure to gas price surge

Chair tells Tynwald forward buying has shielded Island from volatility following Middle East escalation

The Chairman of Manx Utilities Authority says the organisation’s forward-buying strategy has significantly limited the Island’s exposure to recent volatility in global gas prices.

Speaking in Tynwald, John Wannenburgh says that at the time of the strikes on Iran by the USA and Israel, Manx Utilities held a “very strong” forward-looking gas position.

As of 28 February 2026, the authority was 91 percent hedged for the remainder of the current financial year.

‘Hedging’ is a term that refers to a strategy where energy is purchased in advance and prices are ‘locked in’ to protect against market fluctuations.

Mr Wannenburgh says the escalation in the Middle East caused a sharp rise in forward gas prices, with costs increasing from 77 pence per therm to 120 pence per therm on 2 March, and later reaching highs of 170 pence per therm.

However, he believes the authority’s high level of hedging had significantly reduced its exposure to these increases.

At current prices, he said Manx Utilities estimates its additional costs have been limited to less than £50,000 until the next financial year.

Mr Wannenburgh added that the authority is already 88 percent hedged for 2026/27, with supplies secured across both summer and winter periods.

However, he cautioned that the longer-term impact on tariffs will depend on how long the conflict continues, but believes there are no immediate implications for prices at present.