On Air After Hours Dave Moore | 10:00pm - Midnight

MUA defends RPI-based price hike

Price index change would be 'premature'

Manx Utilities says it won't change the way it sets price rises until government adopts a single, standard method of measuring inflation.

That's according to MU Chairman Dr Alex Allinson, after the authority used the Retail Price Index (RPI) to set a 6.4% hike in the Island's water rate.

In the House of Keys today, Dr Allinson said it would be 'premature' to stop using RPI, which is established in Manx Utilities' long-term business plan.

That's despite criticism it is much higher than the Consumer Price Index (CPI), the benchmark for the government's monthly inflation rate, currently 1.9%.

North Douglas MHK David Ashford says the RPI is not a fair or accurate measure:  

More from Isle of Man News