Manx Gas MEGA Price Rise

[Max Power]

In a normal business you sometimes need to bear the costs of unusual temporary price rises, putting up your rate should be the last thing you look to do after looking at ways of cutting costs. But then again, monopolies, such as we have here can almost do as they please. At least we have some sort of regulation. 

[quilp]

Is that regulation not fairly toothless though Max..? 

[Max Power]

7 minutes ago, quilp said:

Is that regulation not fairly toothless though Max..? 

We are about to find out, at least they are beginning to make the right noises?

[Non-Believer]

Does anyone have any news on the outcome of today's meeting?

[Chris Thomas]

CURA has published its decision which is "no increase to gas tariffs at this time". See https://www.cura.im/media/1575/information-notice.pdf. More completely CURA's decision is:

"22. The Authority’s Decision is that there will be no increase to gas tariffs at this time. A further increase would benefit Manx Gas, but disproportionately negatively impact on the Authority’s other stakeholders, specifically gas consumers and the public interest. The Authority should seek to avoid such asymmetric outcomes where possible.

23. At the time of writing the commodity prices are near an all-time high, however, as pointed out previously, it is unclear if this is a transitory phenomenon or not. In the recent past the market has seen dramatic increases in price but it proved to be short lived. It would be wise for the Authority to maintain a watching brief on it at this time but there is insufficient data available make any reliable predictions as to whether this will be a sustained increase or not. In any event, the current market highs were not the motivation for Manx Gas seeking the review of tariffs at this time.

24. The Authority is working to have more detailed price controls in place in early 2022, the effect of these controls will be to ensure that tariffs are fair. The biggest change that this regulatory framework will bring about will be transparency – all stakeholders will be able to see how the tariff is made up and that the returns being generated by Manx Gas are in line with market norms and are closely monitored. This means that consumers can have confidence that the tariff they pay is reflective of the cost of the gas they consume and the cost of providing it."

CURA also helped clarify any remaining misunderstanding about Manx Gas's request in a background note as follows:

"4. On 29th November 2021 Manx Gas wrote to the Authority, advising that in light of continuing high commodity prices it was losing “significant profit’” versus the previous year and requesting “a further review from CURA and recommendation of either another price increase or an alternative solution to rectify the significant impact on our business”.

5. It should be noted that this request for a review is in line with the review process set down in the Decision made by the Authority in May. Clear evidence of the criteria being met to trigger a review was provided to the Authority."

 

[Non-Believer]

1 hour ago, Chris Thomas said:

23. At the time In any event, the current market highs were not the motivation for Manx Gas seeking the review of tariffs at this time.

 

......and requesting “a further review from CURA and recommendation of either another price increase or an alternative solution to rectify the significant impact on our business”.

??

What was their motivation then...? 🤔

[Zarley]

14 hours ago, Non-Believer said:

??

What was their motivation then...? 🤔

Trying it on in order to increase their profits. 

That's what it looks like to me anyway.

It's like I always told my daughter. If you want something, just ask. The worst they can say is "no"*. 

 

*Or "fuck off". She was just a kid though, so I tried to keep it polite.

[Andy Onchan]

15 hours ago, Non-Believer said:

??

What was their motivation then...? 🤔

Or, indeed, what was in their minds concerning "an alternative solution"?

Shysters!
 

[A fool and his money.....]

1 hour ago, Andy Onchan said:

Or, indeed, what was in their minds concerning "an alternative solution"?

Shysters!
 

You've got to wonder whether the £700000 reduction in what they are charged to use government infrastructure per year  is part of the "alternative solution" they were seeking. The timing is very suspect. I know the official line is it will all be passed on to the customers, you've got to wonder whether that's entirely true. 

Also I wonder what they mean by "returns generated by Manx Gas are in line with market norms"? What market are they referring to here? And why should their returns be in line with market norms when during exceptional times like now, their losses are presumably well below market norms?

It will be interesting (and no doubt costly) to see what happens in the new year. 

[hissingsid]

It was a good deal forManx Gas though no wonder Jo was smiling and saying how great it was to do business with the Manx Government.    Which would you choose in her position a further increase which would probably have the effect on useage or a guaranteed reduction of 700,000 a year. Really……..what a farce.

[A fool and his money.....]

2 minutes ago, hissingsid said:

It was a good deal forManx Gas though no wonder Jo was smiling and saying how great it was to do business with the Manx Government.    Which would you choose in her position a further increase which would probably have the effect on useage or a guaranteed reduction of 700,000 a year. Really……..what a farce.

Yeah, you do get the impression there's only ever one winner in this game, and it's not the consumer or the Government.

[Gladys]

The report says MG were experiencing a fall in profits, not that they were operating at a loss. 

[cissolt]

1 hour ago, hissingsid said:

It was a good deal forManx Gas though no wonder Jo was smiling and saying how great it was to do business with the Manx Government.    Which would you choose in her position a further increase which would probably have the effect on useage or a guaranteed reduction of 700,000 a year. Really……..what a farce.

Did we send in the DOI negotiation team? Fresh from their Liverpool landing stage glory

[CallMeCurious]

So basically the taxpayer is subsidising gas customers. Not sure that is in the spirit of zero carbon now is it? Surely the green logic is to let CO2 sinners price themselves so high that expensive renewables start to look economic.

Extinction Rebellion seem awfully quiet as do the other greenies. Surely they should be out protesting the IOMG favouring evil gas suppliers.   

 

[Paulos The Great]

On 12/23/2021 at 10:38 PM, CallMeCurious said:

So basically the taxpayer is subsidising gas customers.

If you think what we pay for gas is expensive you should see what this woman is charging

https://www.ladbible.com/community/woman-who-made-37000-a-week-selling-farts-has-been-hospitalised-20220104