The chairman of the Water and Sewerage Authority says customers can't expect savings in the short term when the utility merges with the Manx Electricity Authority.
John Houghton MHK says tariffs, particularly for electricity, are likely to rise.
Households and businesses will also have to pay a £50 sewerage charge on April 1, when the Manx Utilities Authority comes into existence, with that doubling for next year.
Mr Houghton, who's also vice chairman of the Manx Electricity Authority, says the merger is about managing the MEA's debt:
Clip 1
Bus station will not be moved to the Sea Terminal
Forum explores what domestic abuse looks like on the Isle of Man
MHK apologises to constituency colleague after 'parasite politics'spat
Noble's Park masterplan to enhance 'jewel in the crown'
Sick leave in public sector cost £44 million over three years