THE Liberal Vannin Party has hit out at plans to freeze electricity prices for two years as 'electioneering'.
The Council of Ministers (CoMIN) has agreed short-term financial support for the Manx Electricity Authority (MEA) to protect customers during a period of spiralling global fuel costs.
A working group had been set up by CoMIN following concern over rising energy prices.
However a statement from Liberal Vannin said the '£14.5m bail out of the MEA has sent shockwaves through the Liberal Vannin Party'.
The government's package of financial support for the MEA over the next two years comprises relief from interest charges - financed from internal sources - worth £7.9m in total and additional capital advances totalling £6.6m.
Liberal Vannin Party leader Peter Karran MHK said: "Not only is it blatant electioneering but it is also another prime example of closed-shop parliamentary practice that has been this government's trademark style for years.
"The group has no statutory authority to introduce such a measure which, even, if it were presented democratically, would require Tynwald approval next year when the 2012-2013 budget is debated.
"I am sure we in the Liberal Vannin Party are not alone in being surprised that government should have wished to make any reference in public to 'MEA' and 'loans' in the run up to the general election - a decision that only serves to confirm our long-held conviction that this inept administration is woefully out of touch with the people it purports to serve."
The plan to shield customers from proposed price hikes was revealed last month.
Economic Development Minister Allan Bell MHK, who has chaired the working group set up by CoMIN, said at the time:
"My department has had concerns for some time now over the impact of rising fuel bills on local businesses and the implications of that for the Island's economy.
"This holding measure agreed with the MEA will at least provide some reassurance and stability for businesses, and indeed for households, over the next two years.
"In the meantime the Department of Economic Development will be stepping up its promotion of existing schemes, including capital grant support, to help companies such as manufacturers achieve greater energy efficiency."
Chairman of the Manx Electricity Authority Quintin Gill MHK said: "The MEA is doing all it can to minimise costs but is unable to control or influence global energy prices and is pleased to be working closely with government departments to protect our customers."
Without this support the MEA would have to increase electricity prices by approximately 10 per cent over the period to 2013, the government has said.
The relief package will be subject to the necessary Tynwald approvals as part of the 2012/13 Budget.
