Electricity Price Hike

[Non-Believer]

1 hour ago, Passing Time said:

this is why they no longer have any retail outlets. The waste and management of that sections was appalling and border line criminal

Are the remaining parts any better...?

[forestboy]

1 minute ago, Non-Believer said:

Are the remaining parts any better...?

Would appear NOT. 

[CallMeCurious]

1 hour ago, forestboy said:

Would appear NOT. 

They had redundancies a few years ago (think around the time the Profiit loan came to ligth) and the longest serving guys who got the biggest payouts left, along with all of the experience and knowledge. Sometimes you cut the strongest limbs and leave the dead wood behind so it makes matters worse not better in the long run.

[Passing Time]

55 minutes ago, CallMeCurious said:

They had redundancies a few years ago (think around the time the Profiit loan came to ligth) and the longest serving guys who got the biggest payouts left, along with all of the experience and knowledge. Sometimes you cut the strongest limbs and leave the dead wood behind so it makes matters worse not better in the long run.

In a nutshell - this is IOM government

[2112]

Spring Budget: Prepayment energy meter bills to be cut by £45 https://www.bbc.co.uk/news/business-64930953
 

An article which is previewing amongst measures being introduced. I doubt Manx Utilities will adopt similar measures, or even any different measures, for those on prepayment meters. The increase in tariff certainly won’t help people, the problems of Manx Utilities being created specifically by those who wanted to play at being business people, and successive governments who failed to get a sufficient grip on the problems, whilst prevaricating until it’s too late. 

[Roger Mexico]

1 hour ago, 2112 said:

Spring Budget: Prepayment energy meter bills to be cut by £45 https://www.bbc.co.uk/news/business-64930953
An article which is previewing amongst measures being introduced. I doubt Manx Utilities will adopt similar measures, or even any different measures, for those on prepayment meters. 

It doesn't apply on the Island because those with pre-payment meters don't pay a higher rate in the first place, unlike the current situation in the UK:

Do I pay more for having a pre-payment installed?

No, our pre-payment customers all pay the same discounted price as our other bill paying customers. The prompt payment discount is included in the rate and the standing charge is the same for all domestic customers.

They can't give you what you've already got.

[Non-Believer]

38 minutes ago, Roger Mexico said:

They can't give you what you've already got.

They just want us to give them everything that we've got 😂

[0bserver]

I would welcome MUA releasing the workings out for how they calculated the upcoming tariffs.

[finlo]

4 minutes ago, 0bserver said:

I would welcome MUA releasing the workings out for how they calculated the upcoming tariffs.

 

[Happier diner]

11 minutes ago, finlo said:

 

https://www.manxutilities.im/media/2297/pricing-review-2021.pdf

[Dirty Buggane]

I would love to see a forensic accountant go through every MHK's bank accounts.(past/present/and future) Just to keep them squeaky clean. If you ain't done nothing wrong no need to fear it.

And while were at it how about all gov department heads.

The amount of money it would save, it would be cost negative

[Non-Believer]

18 minutes ago, 0bserver said:

I would welcome MUA releasing the workings out for how they calculated the upcoming tariffs.

 

[finlo]

15 minutes ago, Happier diner said:

https://www.manxutilities.im/media/2297/pricing-review-2021.pdf

Nice to see they're looking to further lower the FIT to those stupid enough to sell them their excess production!

[CallMeCurious]

50 minutes ago, 0bserver said:

I would welcome MUA releasing the workings out for how they calculated the upcoming tariffs.

ANNUAL INCOME ADJUSTMENTS
Within each 5-year period Manx Utilities’ overall income is allowed to change with reference to the following:
• Annual increases for general inflation, based on the Isle of Man 12-month Consumer Prices Index (CPI) to 30 September published in October each year;
• Adjustments to electricity tariffs for changes to wholesale gas prices, to the extent that these changes cannot be mitigated; and
• Reduction of the discount of Water and Sewerage Rates for non-domestic customers, with the discount reducing from the current 50% by 5% per year to 25%.
The above proposals provide certainty to customers that significant price increases will not occur and that the majority of tariffs will not increase in real terms during this period, other than for any substantial changes in wholesale gas prices. The results of each annual review of tariffs is to be undertaken and published by the end of the December before changes are made in the following April. This document is the report for tariff changes commencing in April 2022.

Inflationary increase
2019-20 2.4%
2020-21 1.1%
2021-22 0.0%
2022-23 (proposed) 5.0%

PROTECTION OF CUSTOMERS
Following the proposed increases for 2022-23, the average domestic charges are expected to be:
• Electricity £820 (based on 3,200 kWh), increased from £645 (+27% overall).
o Standing charge 20.2 pence per day to 21.2 pence per day;
o Unit rate 16.9 pence per kWh to 22.0 pence per kWh.

Well the report is so much Andrex then isn't it or will it turn out that it was a typo? 
For reference wholesale gas prices over the last few years.  

 

[0bserver]

18 minutes ago, CallMeCurious said:

ANNUAL INCOME ADJUSTMENTS
Within each 5-year period Manx Utilities’ overall income is allowed to change with reference to the following:
• Annual increases for general inflation, based on the Isle of Man 12-month Consumer Prices Index (CPI) to 30 September published in October each year;
• Adjustments to electricity tariffs for changes to wholesale gas prices, to the extent that these changes cannot be mitigated; and
• Reduction of the discount of Water and Sewerage Rates for non-domestic customers, with the discount reducing from the current 50% by 5% per year to 25%.
The above proposals provide certainty to customers that significant price increases will not occur and that the majority of tariffs will not increase in real terms during this period, other than for any substantial changes in wholesale gas prices. The results of each annual review of tariffs is to be undertaken and published by the end of the December before changes are made in the following April. This document is the report for tariff changes commencing in April 2022.

Inflationary increase
2019-20 2.4%
2020-21 1.1%
2021-22 0.0%
2022-23 (proposed) 5.0%

PROTECTION OF CUSTOMERS
Following the proposed increases for 2022-23, the average domestic charges are expected to be:
• Electricity £820 (based on 3,200 kWh), increased from £645 (+27% overall).
o Standing charge 20.2 pence per day to 21.2 pence per day;
o Unit rate 16.9 pence per kWh to 22.0 pence per kWh.

Well the report is so much Andrex then isn't it or will it turn out that it was a typo? 
For reference wholesale gas prices over the last few years.  

 

I get that there was the price shock following Ukraine v Russia. But that now appears to be on the way back down with wholesale prices returning to almost pre-2022 levels. 

I have a suspicion that when Tim Johnstone was justifying these price increases with spiel about Russia, he wasn't being totally honest with us. 

Something has obviously happened to change the price. 

1) Has MUA made some duff forward purchases at higher prices than are expected? 

2) Are they just ramping up the prices to pay back their ~£50m losses? 

If it's the latter then there needs to be some form of control on that and MUA need to pay it back over time rather than using a sledgehammer to crack a nut. 

If it was deemed acceptable to limit Manx Gas profits, then it's only right to limit Manx Utilities 'profits'. There's a strong argument CURA should be regulating electricity prices. 

Once again we're smacked in the face by public sector incompetence when trying to operate in a commerical market.