Manx Gas MEGA Price Rise

[WTF]

9 hours ago, Gladys said:

How old do you think I am?  I wore bodices, but absolutely no liberties. 

happy 80th for tomorrow Gladys .     

[Happier diner]

2 hours ago, Asthehills said:

Who are “the people accountable” in this case? 
 

Please don’t say our local to pot politicians and our tiny gas company! Neither of whom have any influence on an international issue

Maybe @Amadeus will give us his view on who he holds accountable

Perhaps it will be whoever decided to put all our power requirements into one fuel all those years ago - Gas?

Perhaps it will be all those who since that decision was made have continued to put all our power requirements into one fuel - Gas?

perhaps it will be those that now have the accountability and continue with the same strategy? Have we seen any emergency action in the last 12 months? No. Nothing. All the while other jurisdictions can dilute the effect with renewable sources, apart from a tiny hydro we have nothing. We have nothing and there is no sign of getting anything. Better to waste millions subsidising electricity that spending on alternatives?

[Passing Time]

12 hours ago, Gladys said:

Cardigans, that's the answer.

Can't get decent ones since James Caine closed...

[Non-Believer]

47 minutes ago, Happier diner said:

Maybe @Amadeus will give us his view on who he holds accountable

Perhaps it will be whoever decided to put all our power requirements into one fuel all those years ago - Gas?

Perhaps it will be all those who since that decision was made have continued to put all our power requirements into one fuel - Gas?

perhaps it will be those that now have the accountability and continue with the same strategy? Have we seen any emergency action in the last 12 months? No. Nothing. All the while other jurisdictions can dilute the effect with renewable sources, apart from a tiny hydro we have nothing. We have nothing and there is no sign of getting anything. Better to waste millions subsidising electricity that spending on alternatives?

Or where the £10M that was allotted to the establishment of a new windfarm at the time of the power station construction went?

[cissolt]

46 minutes ago, John Wright said:

Except they don’t “cream” 5% on top of sales. They are allowed to make a profit of 5% on capital employed. That’s whether a therm costs £1 or £1000. The wholesale gas price increase, and the consequent retail price rise, has no effect on profit or return.

And that’s why nationalising will make little or no difference.

I disagree John.  Manx gas have frequently stated that they are losing profit, that would imply they are still making a profit just not as much as they would like.  The agreement guarantees them 5% profit.

The increases are compounded by the fact that Manx gas are entitled to 5% profit. Which is the why it is owned by a venture capital firm.

Why would state ownership be a bad thing?  Government mismanagement maybe?

 

[Passing Time]

1 hour ago, Andy Onchan said:

You're lucky no one's mentioned the war yet! 

That didn't turn out too well for them...

[John Wright]

20 minutes ago, cissolt said:

I disagree John.  Manx gas have frequently stated that they are losing profit, that would imply they are still making a profit just not as much as they would like.  The agreement guarantees them 5% profit.

The increases are compounded by the fact that Manx gas are entitled to 5% profit. Which is the why it is owned by a venture capital firm.

Why would state ownership be a bad thing?  Government mismanagement maybe?

 

That’s because they had to sell at a loss before the regulator agreed to their price increases.

The profit calculation methodology I’ve stated is correct. It’s a 5% profit return on capital employed. Not on turnover or sales.

[Zarley]

20 minutes ago, cissolt said:

Why would state ownership be a bad thing?  Government mismanagement maybe?

Got it in one!

 

[Numbnuts]

8 hours ago, Amadeus said:

Unbelievable that you lot apparently are more happy to go back to a time where life was worse and people died younger, rather than hold the people responsible for the current shambles to account. Is that a British thing? The living in the past stuff? 

Not happy to go back to those days but but at least we knew how to 'survive' in basic situations. Nowadays we have every luxury , seemingly rely on them and when it gets tough people are going to struggle to revert back to how it was. I mean , look at Douglas rates and what we get for our money !!! Just saying. Years ago the streets were clean and well maintained. Walked home from town last night and the surface in town is filthy as mentioned to you a few weeks ago. Why havent the paviers been jet washed ?? Years ago they would be very clean. Have a look !! Not a good impression but what we have come to expect from DC . Sorry but needs to be said .    

[John Wright]

28 minutes ago, cissolt said:

 

Why would state ownership be a bad thing?  Government mismanagement maybe?

 

 

I didn’t say it would be. I said that it wouldn’t reduce gas prices.

Remember, half the gas supply on the Island was government owned and run until the mid 1980’s. Everything outside Douglas, Onchan, Union Mills. There had been no investment in infrastructure. Falling apart. Gas not compatible with UK or Douglas, all appliances required conversion.

Government sold it to Douglas Gas, who changed name to Manx Gas, and invested.

[Andy Onchan]

2 hours ago, emesde said:

The wholesale price of gas has increased by 266% in the past 12 months, including a 68% rise since February, according to Ofgem. 

This is not a problem that can be solved locally. 

If the government can help the public and business in some way to cushion them from the extremes that will be a bonus. However jumping up and down and pointing the finger of blame at local politicians or Manx Gas is just ridiculous. 

As a customer of Manx Gas for over 30 years I have no real issues. We have had a much more stable time with them than many friends in the UK who have seen one supplier after another let them down and many have billing problems still unresolved. 

Notwithstanding the gas producers themselves, someone somewhere is making an awful lot of money.

Many UK "suppliers" are anything but. They're nothing more than a middleman.   

[Andy Onchan]

1 hour ago, John Wright said:

I didn’t say it would be. I said that it wouldn’t reduce gas prices.

Remember, half the gas supply on the Island was government owned and run until the mid 1980’s. Everything outside Douglas, Onchan, Union Mills. There had been no investment in infrastructure. Falling apart. Gas not compatible with UK or Douglas, all appliances required conversion.

Government sold it to Douglas Gas, who changed name to Manx Gas, and invested.

Didn't the GMT stump up a few million a few years back to upgrade and extend the infrastructure across the Island? £20m comes to mind.

[Gladys]

1 hour ago, Roxanne said:

The item of clothing our mothers used to tell us to put on when she was feeling cold.

Exactly. 

[0bserver]

The only way to lower gas prices on the island is to allow MUA to enter the gas supply market as a second supplier - CURA has already said they believe the Island could support two gas suppliers (NPM link: https://www.manxradio.com/news/isle-of-man-news/island-could-support-two-gas-suppliers-says-cura/)... then to get Crogga up and running and purchase gas from them at the already offered preferential rate. 

We can mess around with wind turbines and tidal energy things, but the planning hearings, judicial review and political tinkering means they're at least 10 - 15 years off being available. Crogga can be supplying the island within 3 years. 

 

 

[John Wright]

12 minutes ago, Andy Onchan said:

Didn't the GMT stump up a few million a few years back to upgrade and extend the infrastructure across the Island? £20m comes to mind.

For conversion to natural gas, there was a soft finance deal. But don’t forget it provided savings to government and justified the inter connector and the new power station being gas powered.