A new Manx Utilities Authority will be created on April 1, replacing both the Manx Electricity Authority and the Water Authority.
Tynwald members have approved radical changes to the structure of government proposed by Chief Minister Allan Bell.
Both existing statutory boards have responded to the news.
MEA chairman Howard Quayle MHK has moved to reassure customers, stating: 'Both boards and senior management teams have been working together with the Department of Infrastructure, Business Change Steering Group, Treasury and other government departments to ensure that the merger will be undertaken in the most effective and measured way ensuring that costs are kept to a minimum. All those involved in this work are fully committed to the process.
'An integration plan has been developed which the MEA board is confident can be delivered, and we are giving our utmost consideration to ensure that there is no disruption to customers and are confident that this merger will bring about the best possible solution going forward to serve the Island with essential services.'
Chairman of the Water Authority, John Houghton MHK said: 'I acknowledge that whilst there are separate operational functions of water, sewerage and electricity, there are indeed common systems and services which apply across all activities where savings can be made. The merger will secure the MEA debt position for the benefit of the Island’s economic development and the community as a whole.'
Both authorities have thanked staff for their 'continued support' and say they are making a commitment to keep workforces fully informed during the process.
Got a story? Contact Joanne on 340000 or email firstname.lastname@example.org