The impact of spiralling world fuel prices on the Manx Electricity Authority is highlighted in the annual report of the statutory body, to be laid before Tynwald by acting chairman at the year end Eddie Lowey, MLC later this month.

He says the MEA faced massive rises in fuel costs in 2007/08, with the price of oil more than doubling to $140 a barrel.

Forward purchasing meant there was no need for a fuel cost adjustment during the year.

However, Mr Lowey hints that might not be the case this winter with the comment that if oil and gas prices remain high it would be unrealistic to expect the authority to keep it's own fuel costs within budget.

The MEA recorded a turnover of just under ?60 million in the last financial year, up 4.4 per cent on 2006/07.

Government revenue grants for the year were down by ?3.4 million and the overall deficit for the year was just under ?8 compared with over ?14 million the previous year.

The energy from waste plant produced four per cent of the total electricity generated during the year, without consuming fossil fuels.