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Manx Gas MEGA Price Rise


James Blonde

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2 hours ago, Bandits said:

You’re the politician. Why do you have to wait for the civil servants to tell you what you can say about it? It will be interesting to see why you thought they were such a poor credit risk and refused to let them fund their forward position. It looks like the MUA actually constrained their ability to protect the consumer from the price increases we are all now paying. Did anyone seriously expect such a well funded private equity group not to cough up. Execution only is just that. You can still execute on forward priced deals. You just facilitate the instruction. 

It could also be that the MUA considered that MG/Ancala were such a credit risk that MUA was protecting their own and the public finances by not allowing MG to buy forward.

Meaning that if a statutory Govt body considers MG to be such a dodgy proposition in that respect then it doesn't say much for MG's reputation and/or finances?

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11 minutes ago, Non-Believer said:

It could also be that the MUA considered that MG/Ancala were such a credit risk that MUA was protecting their own and the public finances by not allowing MG to buy forward.

Meaning that if a statutory Govt body considers MG to be such a dodgy proposition in that respect then it doesn't say much for MG's reputation and/or finances?

What would be the worst scenario in that situation? It’s not like if they ended up with a load of cheap gas they couldn’t sell it in this market. The Gef article goes on to say that the MUA never asked for any security to back such a trade as any commodities broker might. So really it looks like they were viewed as such a terrible credit risk that they couldn’t even be bothered to accommodate any sort of forward price trade even on an execution only basis and even if backed by a security deposit or other instrument to cover the position. So they’ve effectively created 100% of the Manx Gas price increase that has been passed on to us. 

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1 hour ago, cissolt said:

Who made the decision to prevent Manx gas from hedging?  What is the impact on the prices we are paying now?

There must be a reason why govt won't release the correspondence between Alf and manxgas that gef have requested via foi

Already been reported, MUA senior officers & the Board of which Rob Callister is chairman 

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6 hours ago, Happier diner said:

Armchair experts?

You are speculating. Massively.

You can guarantee there's a market for gas on the Island so it can be sold. Very, very worst case you buy out of the contract. You'll find it surprising but some people here do know what there's on about.

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If it had gone tits up and Government had been on the hook for MG’s hedge and/or forward purchase and had entered the deal knowing they didn’t have enough information about MGs own financial state or the deal itself, just imagine the shit storm…

Edited by ian rush
To add fwd purchase
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Now why would MG not supply enough information....? Indeed, if I heard the news correctly, they were repeatedly asked?

MUA say that the situation is being reviewed regularly, so presumably MG have every opportunity to comply?

Edited by Non-Believer
extra bit
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29 minutes ago, ian rush said:

If it had gone tits up and Government had been on the hook for MG’s hedge and/or forward purchase and had entered the deal knowing they didn’t have enough information about MGs own financial state or the deal itself, just imagine the shit storm…

You don't think they would be able to offload cheap gas in the current market? It's not quite selling ice to Eskimos.

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1 hour ago, Andy Onchan said:

Ancala are nothing short of shysters. All MG are concerned about is remitting the management fees to their masters in USA (or wherever) each and every month, regardless of what is or isn't happening here.

Ancala are without doubt shysters but I’m sure as a large PE funded infrastructure business they must operate brokerage accounts which allow them to place forward priced contracts for gas and other commodities elsewhere. So it would be interesting to know why the MUA would not place trades on behalf of Manx Gas for gas to be delivered to the IOM on behalf of an Ancala Subsidiary. 

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