The Isle of Man has announced it will cap electricity bills at their current level until 31st March 2023.

The idea had previously been pitched to UK Government officials to help people struggling with the rising cost of living ahead of the new increase in the price cap.

Most of the Isle of Man’s electricity is generated from gas and global price rises mean that Manx Utilities would have needed to increase tariffs by a minimum of 70% this autumn.

This would translate to an increase in the average household bill of around £500 a year.

After consultation with Manx Utilities, the Isle of Man government has directed Manx Utilities to freeze the unit cost of electricity to customers at current levels until 31st March 2023.

The Island’s Treasury Minister Dr Alex Allinson said: “We are shielding households, businesses and organisations from what would have been a sharp and sudden increase in electricity costs of between £16 and £26 million by March next year.

“Instead, people will have that money in their pockets this winter. It is a considerable sum which will help people and businesses to meet rising costs and means this money can circulate in our economy, boosting both consumer and business confidence.”