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Electricity Charges Set To Increase


Amadeus

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If we needed the power station which was built, we therefore needed the loan.

 

 

we needed the original loan based on the original costs, the extra 100+ million never mentioned in the original costings is what the hooha is about. why did this ( like most other government funded schemes ) run way over the original estaimated budget??

 

because someone somewhere was pulling the wool clean over peoples eyes,

 

I know how much the lads were getting for putting the pipes in the ground, and i kid you not it was fooking mentel the rate they got,

and it wasent the companys that said we charge this much, it was the MEA or who ever the main contractor was, turned round and told the company you will charge us this amount per meter, and i can tell you now the companys were left openend mouth of the amount, but they were not going to complain,

 

And if you put the prices back then for the pipe and compare them to what the price they get now for the same pipe there doing at the moment and then your eyes really are opend to the amount that was paid ,

 

it was a field day and it has made a few people millioners in one year

 

 

Even the man who supplied the fucking big Brown envelopes made a fortune out of the MEA and Profit

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  • 2 months later...

You were all right to bring this subject up. We are currently paying 16.2P per kilowatt Hour.

As far as i know the removal of the standing charge will increase this to 17.2P per kilowatt hour.

The MEA is one of the dearest Electricity Companies in Europe

 

In the UK they pay between 9.5P to 12.5P per Kilowatt hour. (There could be lower tariffs)

 

What this means is lets imagine we have a person who runs a 2 bar electric fire rated 2KW in the winter to keep warm for 6 hours a day for 7 days a week over a 1 month period.

 

In the UK at 9.5P per kilowatt hour the electric Fire will cost 0.095X2KWX6X7X4 = £31.92 (Lower limit of UK av)

In the UK at 12.5P per kilowatt hour the electric fire will cost 0.125X2KWX6X7X4 = £42.00 (Upper limit of UK av)

In the Isle of Man at 16.2P per kilowatt hour the fire will cost 0.162X2KWX6X7X4 = £54.43 (Current Price)

In the Isle of Man at 17.2P per Kilowatt Hour the fire will cost 0.172X2KWX6X7X4 = £57.79 (Removing standing charge

 

over 3 months respectively £95.64, £126.00, £163.29, £173.37 (That is just for a 2KW fire to keep warm over the severe months.

 

I use the formula above to keep an eye on my bill and it is very accurate to within pence.

 

Remember this is only for an electric fire or Radiator rated at 2KW and takes no account of running a fridge, boiling kettles, using hairdryers, washing machines, tumble driers, Electric Ovens, TVs Lights etc.

 

Also note that Tumble driers are rated at 3KW and Ovens plus each ring is between 1 and 2KW and many kettles are 3KW.

I think washing machines are about 1KW and hairdryers 1.8KW

 

SAVING MONEY

 

Say you have 3 X 100 watt bulbs in your house burning for 6 hours a day every day for 3 months using the MEA price 16.2P per KWh

 

This will cost you 0.162X0.3X6X7X4X3 = £24.50 per quarter for the three bulbs at 100Watt each

 

You then change these 3X100 Watt bulbs to 11Watt energy efficient bulbs using them for 6 hours a day for 3 months using the same MEA price at 16.2P per KWh

 

This will cost you 0.162X0.033X6X7X4X3 = £2.70 per quarter for the three bulbs at 11Watt each

 

The problem is the heavy use items are more difficult to save money on.

 

The other problem is: They keep putting the prices up nullifying any savings

 

 

According to the Positive Action Group Website there are many increases to come all thanks to the MEA being in Debt due to mis management etc.

 

Do they own their Showrooms or rent them?

If they owned them they could sell them off and cut down on their overheads and use this to lessen the debt.

I actually wrote to them and said this and the reply was "We have no intentions of selling our showrooms"

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Whilst on topic, can someone please explain to me why nobody has been brough to account for the so called illegal loan? This is really straining Government reserves looking at the pink book.

 

Because it was a "so called" illegal loan. It was not and has never been tested in court. Some party's state it was illegal others do not agree. If and until a definitive position is found what action can be taken.

 

My view is that it was unlikely to have been illegal as the bank's lawyers would have crawled all over the papeperwork and checked that the company had the power to borrow before they lent the money. That is standard practice. OK they might have made a mistake but if you have a legal opinion that taking the loan was valid you probably have the makings of a fairly decent defence

 

And that bolded would have assured the bank was in a no lose situation.

 

If it did turn out to be illegal the bank would sue the legal bods for any losses incurred, even if the losses were substantial, the legal bods would i am sure be insured against such a situation.

 

Maybe john wright could shed alittle light on the possible scenario.

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The standing charge rebate has an interesting history - which is in some ways still relevent today.

 

The MEA didn't cancel it, they have continued to charge for it the entire time.

 

What happened was that the government started paying it for the MEA's customers.

 

Why did it do that?

 

Well it was down to the Poll tax!!

 

When the Tories was trying to force the Poll tax through they realized it was too expensive to be successful and so they raised VAT by 2.5% and cut the Poll tax by £140.

 

The IOM Government benefited from the increased tax take from VAT, but the population didn't benefit from a £140 reduction in the Poll Tax, because there was no poll tax on the IOM!

 

To compensate for this the IOM Government agreed to reduce electricity bills on the Island, and so agreed to pay the standing charge.

 

Now they've broken that agreement - it's effectively a tax rise, but it is being made to look like the fault of the MEA. Its not, its simply the result of the continued move to tax people indirectly on their consumption rather than on their income.

 

The MEA was briefly used as a conduit against this trend, but now the Treasury has decided it would rather spend the money as it sees fit, rather than letting us do it - that's governments for you!

 

****

 

Over the so called illegal loans - Tynwald retrospectively sanctioned them - it is a huge legal controversy whether it needed to do this, but that debate is now moot, they have been sanctioned and that means they are now definitely legal!

 

Informative post that chinahand.

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Been in touch with the MEA - Paying this standing charge is a con.

 

The Government paid the Standing charge which meant that once you paid your bills it started from £0.

 

Because the Government no longer pay this standing charge you have to pay 11.51P per day extra which over 90 days equates to £10.35 - So in effect your bill starts off at £10.35 and the rest of the bill is the units you use.

 

That saves the Government about 33000 house holders times by £10.35 a whopping £341550.

What about businesses as i understand they pay this also?

 

The standing charge pays for the meter man to call and read your meter and i think maintainance of the lines.

Does it cost all this just for the above per quarter?

 

What is the standing charge in the UK?

No doubt it will be cheaper - but i am only guessing

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That saves the Government about 33000 house holders times by £10.35 a whopping £341550.

A great way of subsiding the loss making MEA shops. It's obviously an employment scam.

 

Well done IOM Government!

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What is the standing charge in the UK?

No doubt it will be cheaper - but i am only guessing

 

Don't think so. There are lots of 'no standing charge' tariffs which have a hugely increased rate per unit for the first few hundred units. This effectively is the standing charge but charged in a different way.

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  • 4 months later...
Whilst on topic, can someone please explain to me why nobody has been brough to account for the so called illegal loan? This is really straining Government reserves looking at the pink book.

 

Because it was a "so called" illegal loan. It was not and has never been tested in court. Some party's state it was illegal others do not agree. If and until a definitive position is found what action can be taken.

 

My view is that it was unlikely to have been illegal as the bank's lawyers would have crawled all over the papeperwork and checked that the company had the power to borrow before they lent the money. That is standard practice. OK they might have made a mistake but if you have a legal opinion that taking the loan was valid you probably have the makings of a fairly decent defence

 

i think 'legal' and 'authorised' ( by someone that should have known about it ) are 2 different things.

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the bank's lawyers would have crawled all over the papeperwork and checked that the company had the power to borrow before they lent the money.

 

They did. The advice is on the record

 

That is standard practice.

 

It is

 

OK they might have made a mistake

 

Gasp - what are you suggesting?

 

but if you have a legal opinion that taking the loan was valid you probably have the makings of a fairly decent defence

 

No you don't - you have a claim in negligence against the person who gave you the legal opinion.

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