Government interest on £500 million of debt contributes to a rise in electricity and water rates.
That's according to the chairman of the Manx Utilities Authority MHK Alf Cannan - who says elevated interest rates on existing borrowing from Treasury and capital loan repayments have had an impact.
Yesterday, it was announced that electricity and water rates will rise by 2.2 per cent from April 1 - that figure equates to around an additional £3 per month for the average consumer.
Its cumulative debt following the merger and the MUA's decision to pre-pay for utilities are cited as the reasons behind the move.
Mr Cannan explains the situation:
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