Electricity prices frozen on Island

Electricity prices will be capped on Island until the end of March next year.

It's part of a new support package announced by government - to help locals and businesses get through the winter.

Volatility in energy markets has seen a surge in the cost of fossil fuels since the Russian invasion of Ukraine earlier this year.

Without intervention, Treasury Minister Dr Alex Allinson says Manx Utilities would have needed to increase tariffs by between 70%-90% this autumn.

This would have meant a rise to the average household bill of around £500 a year.

For those on the domestic and commercial tariffs it means electricity will remain at 22 pence per unit, into next spring - again, without the cap - prices would have reached 37.4 pence per unit from October 1.

Subject to approval at the September sitting of Tynwald, the price cap will be funded with a Government loan to Manx Utilities to be repaid over 20 years- it's thought this could reach £26m.

Dr Allison explains why the government chose to cap electricity, as opposed to gas: