Electricity prices on the Isle of Man could rise by up to 39% later this year, the chairman of Manx Utilities has said.
Rob Callister warned the House of Keys to expect tariffs to climb with the government-owned supplier exposed to “exceptionally high” global gas costs.
It comes after the authority used £16m from its reserves to shield customers from increases over the last year
Mr Callister said a significant rise was likely to come in April.
Though unable to confirm the exact amount, he told the House of Keys it was likely tariffs would increase between 5% and 39%.
Since 2018 electricity prices on the island have been linked to the Consumer Prices Index rate of inflation in September of the previous year, which stood at 5% in 2021.
Mr Callister said the 39% was the “break even” figure based on current prices, but Manx Utilities was doing everything it could to minimise the increase.
Advanced purchasing of gas had protected households from paying an extra £180 on bills last year, he added, but stressed that position could not be sustained in the next financial year.
The chairman said forward pricing for gas in the summer and winter of this year was “almost four times higher than average”, with the Russian invasion of Ukraine likely to create “further pressures”.