[BBC News] Gas customers face higher bills

[Newsbot]

Thousands of gas customers in the Isle of Man face a 14.2% price rise from 1 May, Manx Gas reveals.

 

Source : http://news.bbc.co.uk/go/rss/-/1/hi/world/...man/7355424.stm

[bluemonday]

So thats up from £1.66 a therm to £1.89.57 a therm. Is that right?

[WTF]

and when the pre bought gas has been used up by the MEA the electric will shoot through the roof aswell.

[Hugh Jampton]

Just had my bill in time then, phew!

[Celt]

"The UK put gas prices up four months ago, and we have held back from following their lead for as long as possible.

 

Yes, because most, if not all, bought bulk gas at the lower price, up to 2 years ago. The UK Gas market was selling it at lower than here becuase they bought so much at a lower price, and had to compete against each other. So the increase there would bring it to about what had to pay before the increase here.

 

Manx Gas, yet again and still do, buy gas on demand. They don't, like the MEA, purchase gas on a future basis.

 

Manx Gas aren't bothered whether they up the price up as they can pass it straight onto the consumer.

 

I thought that someone from the OFT was going to keep an eye on this?

 

 

However, my cousin has informed me tonight, the company she runs cannot afford to pass on these price increases due to gas.

 

So she either has to sell up or 6 people are out of work.

 

Thank You, Our Elected few, who look after to workers when it has already been spelt out to you at least once by the OFT.

 

Cool, MHK's. Maybe you can give them a job, mowing your lawns and emptying you bins please sir

 

I wish to my God that, hopefully soon, the bunch of dickwits who pretend to govern, see this.

 

Monopoly don't win for the people.

 

Anyway, put in loads of info to the OFT, spent many hours and day looking into research and such, thought it was helping the Isle of Man out and then they allow this shoite to happen.

 

Don't forget that the gas we get here comes directly from Europe via Gas Erin, not from the UK.

 

Manx Gas even had the cheek to make the MEA pay for a reduction facility to reduce gas pressure before they'd buy it.

 

The same MEA who are the buying Agents for Manx Gas.

 

Beggers belief really.

 

Fuck It Don't know why i bothered.)

[bluemonday]

The company blamed the rising cost of wholesale gas, record oil prices and the global credit crunch for the rise

I can understand rise in costs for wholesale gas and oil but what exactly has the global credit crunch to do with it?

fuel cost adjustment

Three words where two will do ie Price Increase.

[triskelion]

The company blamed the rising cost of wholesale gas, record oil prices and the global credit crunch for the rise

I can understand rise in costs for wholesale gas and oil but what exactly has the global credit crunch to do with it?

Due to the instability in the credit market, investors are moving into commodities, which are seen as 'safe havens' during times of economic uncertainty. This increases demand for such goods, such as gas, oil and wheat, therefore driving up the price.

[bluemonday]

Cheers Tri.

[Hugh Jampton]

You say Manx Gas is a monopoly, but looking at the history of gas on the island each town had a gas company. Each one finally collapsed financially because it was too small and todays Manx Gas is the resulting comglomeration of these old companies.

Manx Gas today is supplying gas to say 25,000 customers. This is a small town in the UK and would be hard to invite another company to compete with half of those customers and realise a profit.

 

It looks like there are three types of gas supplied by Manx Gas. Natural Gas, LPG and bottled gas.

 

Perhaps the solution would be to encourage the UK company (Centrica?) to buy Manx Gas in order to get parity with UK prices.

 

Any further thoughts from the panel?

[triskelion]

How would you do that?

 

Gas is not exactly cheap in the UK, and nor is likely to go down in price much in the foreseeable future, so even if your idea was feasible, it would only reduce costs in the short-term.

 

Better to focus on pushing alternatives and efficiency I would think.

[Hugh Jampton]

agree with you but people on MR moan about Manx Gas and a lack of competition but do not come up with a sensible solution.

I cannot see one much different than the Company we have now

[Tempus Fugit]

there must be loads of methane produced from the IRIS system, can this be collected and bottled or fed into the gas system ?

[WTF]

Perhaps the solution would be to encourage the UK company (Centrica?) to buy Manx Gas in order to get parity with UK prices.

 

Any further thoughts from the panel?

it didn't work with telecom, they just claimed it is a separate business and charge different bigger prices unaccordingly. when proper competition arrived MT filled its nappy and the prices dropped significantly. these type of businesses are protected by government to keep people in jobs. look how quick manx ices went when imported lesser quality ice cream was allowed in. local bread is extortionate and as such the imported stuff is sold at a premium over it's uk price. great eh?? so in effect these defacto monopoly's allow ather products to be sold at over the odds too. why is manx meat cheaper in the UK than on island when we hear that transport costs are the reason for things costing more over here?? goverment funds plenty of businesses with grants and subsidy's to keep people in work. i can in some ways understand why, but it doesn't seem fair on the businesses that are standing on their own feet.

[Pat Ayres]

Solution, use less gas?

[WTF]

Solution, use less gas?

not the solution. it may be for a few people in the short term but not really. consider a company needs to make 100K a year to pay the bills. it sells 100 tons of gas and makes it's 100k, woohoo. people use less gas, company sells less gas but still needs the 100k, result, gas goes up to cover the deficit. and so on. same with petrol, first guy to get a 50mpg car, great, cheaper motoring ( ignoring the initial cost of economic car ). every body gets 50 mpg, government and oil companies get less revenue, cost goes up. diesel cars; first few years of very few diesel cars, great savings for owners. more diesel cars ( less petrol sold ) duty on diesel goes up. cost of haulage by diesel lorries goes up. lots and lots of diesel cars, diesel 10p a litre more than petrol !!!. result in real terms is that it is not wirth paying the extra for a diesel vehicle cos a modern petrol engine is nearly as effecient and it would take years of high mileage to recover the cost! why ANYONE would buy a small diesel car today eludes me on the current figures. reality, not everyone can save, the overheads will always need paying for out of the sales. first few in can save for a while, but not forever. if we all had wind turbines air would be taxed.