Electricity Price Hike

[finlo]

2 minutes ago, Happier diner said:

There won't be anymore power stations. 

Of course not, they're looking for us to fund windymills and solar for cheap to generate power plus another interconnector to buy cheap power from elsewhere when the wind don't blow.

All to be sold to us ( the funders) at a premium because it's "green"!

[genericUserName]

50 minutes ago, Happier diner said:

All organisations should be efficient

Not all.

The performance of many organisations and services is better considered in terms of effectiveness rather than efficiency. And the most efficient is certainly not always the most effective.

The NHS for example should be primarily measured in terms of its effectiveness and outcomes.

Edited March 15, 2023 by genericUserName

[Happier diner]

53 minutes ago, finlo said:

Of course not, they're looking for us to fund windymills and solar for cheap to generate power plus another interconnector to buy cheap power from elsewhere when the wind don't blow.

All to be sold to us ( the funders) at a premium because it's "green"!

What would you do?

[NoTail]

8 minutes ago, genericUserName said:

Not all.

The performance of many organisations and services is better considered in terms of effectiveness rather than efficiency. And the most efficient is certainly not always the most effective.

The NHS for example should be primarily measured in terms of its effectiveness and outcomes.

Bollix

 

Give me £50m and I could give you an effective promenade.  Not very efficient though.

[finlo]

13 minutes ago, Happier diner said:

What would you do?

But I'm not looking to fill a gigantic pension blackhole, which this and the rackets spiralling fares are!

[CallMeCurious]

3 hours ago, Happier diner said:

I'm sorry to say this isnt right. Gas is still more than double what it cost last time electricity tariffs were altered. How can you pass on a saving you haven't made?

When you compare the unit rate of gas with unit costs

Currently wholesale is 130.7p therm and a therm is 29.3kWh so per kWh = 130.7p/29.3 = 4.46p per kWh.

So doubling of gas prices went form about 2.2p per kWh to 4.46 per kWh.

Now obvioulsy there are additional on costs for transport over the network and inefficiency in the delivery/conversion of the gas to electricity.

But if the price is an indicator then 4.5p of 34p/kWh is 12% whereas historically 2.2p of 22p/kWh is 10%. So what is the remaining 29.5p paying for. Maybe MUA could provide a simple pie diagram of where % of charge goes?

For comparison, Manx Gas charge to 14p/kWh making wholesale gas about 32% of charge.

Because like petrol and deisel, the wholesale gas price even doubling from 2.2p to 4.46p per kWh is a fraction of the cost we are charged for per kWh for gas and electricity.  So by rights gas and electric only need to go up by 2.26p per kWh to cover the wholesale price doubling.

But it's a very convenient opportunity for the MUA and Manx Gas to gouge us on the basis of Brexit/Ukraine/Covid rather than admit they've run up big debts. Government colludes because they get a fat revenue increase and can justify expensive green energy options on the basis that the savings are bigger.

This is the economics of most furniture stores sales. Hike the normal price to somehting stupid so people can 'save' a few hundred when it goes on sale. Or the wife coming home after buying 3 pairs of shoes she doesn't need and saying "honey I saved £50" when it is actually "No you spent £150".

 

[Happier diner]

35 minutes ago, finlo said:

But I'm not looking to fill a gigantic pension blackhole, which this and the rackets spiralling fares are!

Bit what if you were? It's easy to critisise everything, far harder to come up with better suggestions. 

[finlo]

5 minutes ago, Happier diner said:

Bit what if you were? It's easy to critisise everything, far harder to come up with better suggestions. 

I've made plenty of better suggestions over the years the main one being size the government to the population not the other way around!

[Albert Tatlock]

All it takes is 13 people agreeing with each other to turn this round...how hard is that if they sign up for the same 5 things at election time?

[Happier diner]

23 minutes ago, finlo said:

I've made plenty of better suggestions over the years the main one being size the government to the population not the other way around!

Its not strictly to do with the size of government. I'm meaning more specifically about the electricity dilemma. That being the thread we are on. 

[finlo]

4 minutes ago, Happier diner said:

Its not strictly to do with the size of government. I'm meaning more specifically about the electricity dilemma. That being the thread we are on. 

The price rises are primarily to keep our overlords in the style of which they've become accustomed.

[The Voice of Reason]

5 minutes ago, finlo said:

The price rises are primarily to keep our overlords in the style of which they've become accustomed.

By overlords do you mean our MHK’s?

If so how does the rise in electricity prices keep them in the “ style of which they’ve become accustomed “?

I’m having a bit of trouble trying to understand how the two things relate.

Could you elaborate?

[Bazza Smurf]

https://youtu.be/DNc61H33MAg

[Non-Believer]

The Govt has shied away from anything remotely involving cuts or economies to itself since the days of the VAT cutback 12+ years ago.

On every occasion the answer has been to cut services to the public or raise taxes and charges to same. Yet Govt has provenly kept on growing in the same time in numbers and attendant liabilities. It simply has no concept of turning the knife on itself and the MUA have been no different. They have had years to restructure and become leaner but have done sweet FA. Silo survival. They were given £78M for "infrastructure investment". Where and what is it?

But the MUA position has the potential to deeply damage the whole economy IMHO. By raising prices in the projected degree, disposable incomes will be hit. That hits local businesses who are also directly hit by the energy costs, a double whammy.

And do we continue to raise electricity prices to try and chase down this debt? For how long? By how much? To what amount of damage to incomes and the economy?

If we have these "billions in reserves", it's time to call on some of it to potentially save the economy.

[finlo]

3 minutes ago, The Voice of Reason said:

By overlords do you mean our MHK’s?

If so how does the rise in electricity prices keep them in the “ style of which they’ve become accustomed “?

I’m having a bit of trouble trying to understand how the two things relate.

Could you elaborate?

Not MHK's particularly but the whole bloated out of control government monster.