Manx Gas MEGA Price Rise

[2112]

17 minutes ago, Amadeus said:

There is ZERO need for a monopoly company to sponsor or advertise anything. Who do you think pays for all the ads and the fancy hospitality and free booze? Their customers. Manx Gas had been taking the piss for way too long. 

Surely all these advertising, and sponsorship can be put down in the annual accounts as an expense? 

[2112]

14 minutes ago, Youaintseenme said:

There are loads of businesses who supply and fit gas boilers.

The more profit Manx Gas make selling and servicing boilers the less they have to try and make on pure gas sales.

The more they diversify their revenue streams and reduce their reliance on pure gas sales then the better off the gas customers will be.

Manx Gas used to have a showroom near the North Quay selling gas appliances and you could pay your account there. 

[finlo]

Just now, 2112 said:

Manx Gas used to have a showroom near the North Quay selling gas appliances and you could pay your account there. 

Now they "allegedly" give the appliances to the developers for free!

[Banker]

1 hour ago, Ringy Rose said:

Forever? Probably not, as the owners would wander off bored (though would the departure of Ancala Partners LLP be a bad thing?) It also raises the question about whether a monopoly should be a private business. The MUA aren't taking the piss with price rises, after all.

But in the current climate, why should Ancala Partners get a guaranteed percentage return (which bizarrely means fatter profits just when costs are highest) when the rest of us have to tighten our belts?

CURA setting a percentage retail margin without then setting an upper earnings limit (e.g. 3% up to a maximum of £x) is just staggeringly bad judgement. As I feared, Ancala Partners have just played them as idiots.

Bollocks! The guaranteed return is to cover necessary investment & allow a return on capital invested, no body runs a business on zero returns as they would not be in business long 

[Banker]

2 hours ago, Happier diner said:

Are they in the public domain?

No as various idiots would make all sorts of wrong conclusions and it’s a private company.

[Ringy Rose]

43 minutes ago, Banker said:

The guaranteed return is to cover necessary investment

No, read the regulations, the network return (to fund capital costs) is separate to the retail margin percentage (profit). They get the network return then they get their profit on top. Cushy.

And to make matters worse, CURA have decided the retail margin percentage applies to MG's total costs, including the wholesale cost of gas, when calculating MG's allowed revenue. So as costs rise, so do their profits. 3% of a lot is more than 3% of a little.

Presumably IEG are praying for continuing high wholesale prices. Everyone else is wondering why CURA weren't bright enough to taper the retail margin percentage to prevent higher wholesale costs translating into higher profits.

The relevant bit is:

The allowed revenue is to be calculated using the following formula:

Allowed revenue = (allowed retail costs x (1+ the public gas supplier’s retail margin percentage)) + prior period allowed revenue adjustment. 

The allowed retail costs include the network return and the commodity price.

The whole thing is just ridiculous.

Edited March 29, 2022 by Ringy Rose

[0bserver]

Not surprised Cowardly Cannan's Comin were in such a hurry to offload the pricing regulatory powers. Now they can hide behind it.

[Ringy Rose]

2 minutes ago, 0bserver said:

Not surprised Cowardly Cannan's Comin were in such a hurry to offload the pricing regulatory powers. Now they can hide behind it.

Cannan was behind the last shitshow of a regulatory regime too.

[asitis]

Has anyone seen or heard from Cannan, he seems MIA.

[WTF]

9 minutes ago, asitis said:

Has anyone seen or heard from Cannan, he seems MIA.

why bother with the 'A'  ?  there isn't any.....................

[Happier diner]

8 hours ago, Ringy Rose said:

No, read the regulations, the network return (to fund capital costs) is separate to the retail margin percentage (profit). They get the network return then they get their profit on top. Cushy.

And to make matters worse, CURA have decided the retail margin percentage applies to MG's total costs, including the wholesale cost of gas, when calculating MG's allowed revenue. So as costs rise, so do their profits. 3% of a lot is more than 3% of a little.

Presumably IEG are praying for continuing high wholesale prices. Everyone else is wondering why CURA weren't bright enough to taper the retail margin percentage to prevent higher wholesale costs translating into higher profits.

The relevant bit is:

The allowed revenue is to be calculated using the following formula:

Allowed revenue = (allowed retail costs x (1+ the public gas supplier’s retail margin percentage)) + prior period allowed revenue adjustment. 

The allowed retail costs include the network return and the commodity price.

The whole thing is just ridiculous.

I think perhaps we are talking about two different issues here. There is an arguement that the contract with Manx Gas is biaised in their favour. Perhaps.

I think the point that I am trying to make is that we cannot expect anything else but a massive rise in the gas price.

Your arguement might be correct and that massive rise is a few %too much in their favour. My arguement is that in the overall scheme of things that's of lesser relevance than the fact that they need to put the price up significantly whatever, otherwise they (and no one else) could possibly function as an entity. 

Edited March 30, 2022 by Happier diner

[Banker]

8 hours ago, 0bserver said:

Not surprised Cowardly Cannan's Comin were in such a hurry to offload the pricing regulatory powers. Now they can hide behind it.

Takes political arguments out of decisions, exactly the same as regulatory bodies in Uk 

[0bserver]

18 minutes ago, Banker said:

Takes political arguments out of decisions, exactly the same as regulatory bodies in Uk 

The same as the UK? 

That makes it perfect 

[Ringy Rose]

42 minutes ago, Happier diner said:

I think the point that I am trying to make is that we cannot expect anything else but a massive rise in the gas price.

Absolutely, we're not immune to the wholesale price rise. I don't have a problem with the price going up as the wholesale cost goes up. Although it should be noted the wholesale price today is half what it was at Christmas.

I do have a massive problem with everything else going on though: the way CURA calculate the profit, the way profit is in addition to a return on investment. I simply have no faith MG will behave honestly.

I also question why we're giving a business a guaranteed profit when everyone else has to "make a sacrifice, there's a war on".

Edited March 30, 2022 by Ringy Rose

[Ringy Rose]

22 minutes ago, Banker said:

Takes political accountability out of decisions, exactly the same as regulatory bodies in Uk 

Fixed that for you.