The Manx Electricity Authority says it’s saved customers almost ?3million through so-called ‘forward buying’.
The practice means promising to buy a certain amount gas form a supplier in the future, but at its present price.
In Tynwald this week, MEA chairman Eddie Teare faced questions about the practice from North Douglas MHK Bill Henderson.
Mr Teare said by agreeing prices earlier this year, the MEA had slashed 30% off the wholesale cost.
Jason Roberts reports:
(Text of attached audio)
Mr Teare revealed the MEA had been planning how much natural gas it would need throughout next year and had already bought forward certain amounts.
He said given the price paid at the time and the price of gas as of Monday, the MEA had managed to save ?2.7million.That equates to a saving of 30% and Mr Teare said this was how the authority had managed to hold back price rises.
He said the practice would continue as the MEA tried to control its prices.
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