Electricity Price Hike

[John Wright]

2 minutes ago, CallMeCurious said:

Wonder how much that lot has cost including fees and the interest paid to Barclays.

The water loan was never from Barclays. Barclays electric loan  was paid off a long time ago. There aren’t really loan fees or costs between IoMG and MUA - which is just a trading entity of MUA

[Andy Onchan]

It will all be refinanced at rates substantially more than what is being paid now. None of the capital will be repaid.

[CallMeCurious]

12 minutes ago, John Wright said:

The water loan was never from Barclays. Barclays electric loan  was paid off a long time ago. There aren’t really loan fees or costs between IoMG and MUA - which is just a trading entity of MUA

Yes but the Barclays charges and interest are still a part of the cost of the entire loan from beginning to end. Presumably they'll be looking for a new loan soon to cover the costs of a replacement for Pulrose and the windymills.

 

[Andy Onchan]

It's just the equivalent of an interest-only mortgage arrangement.

[Bazza Smurf]

Dear Ministers

 

The following is an open email and will be shared among the wider public on the 1st April 2023, the date of the first rise of electricity prices. I would hope to have had some positive feedback regarding this email before the next crippling rise on the electricity price at 1st July 2023. 

 

You will all be aware that Manx Utilities has announced a two-stage increase of the Island’s electricity prices.

 

The standard domestic rate tariff will increase from 22 to 28 pence per unit on 1 April 2023 with a further rise on 1 July 2023 taking prices to 34 pence per unit.

 

You will also be aware that when CURA were implemented as the regulator in charge of Island Energy (Manx Gas as it was then) back in 2020/2021, Tynwald was open to exploring the idea of bringing other utility companies under the scope of a regulator. In fact the idea has been documented in Hansard on a number of occasions. 

 

I would be interested in understanding what progress has been made exploring the idea of bringing the MUA pricing under an independent regulator such as CURA? 

 

Looking at the current scenario as simply a customer of both Island Energy and the MUA, it is my opinion that CURA has shown it's absolute worth as a regulator showing massive levels of transparency with its two price investigations into gas retail pricing namely one in July and one in January each year. 

 

What the public now understand is that if the wholesale price of gas goes up or down by a considerable amount over a steady considerable period, we expect a fall or rise on our gas bills accordingly. It's a simple clear system that all understand. Nothing at all complicated. 

 

Unfortunately however even with a continuous downtown in wholesale gas prices, today sitting at 119 pence per therm, we are told to simply suck up two major price rises on electricity so far with little or no explanation as to not only why but also and more importantly as to when the public might ever be hopeful of a reduction in price. The public should under a fair regulation system expect that if wholesale gas prices continue to lower, so should retail prices. That is how a fair market should work. 

 

My question today is how can COMIN currently justify the current vague and unfair pricing system at the MUA where cross subsidisation of some seems the normal, whereby Island Energy must comply with a price review twice a year whether they like it or not? Hammer some it seems but lay out the red carpet for its own. 

 

Essentially in 2023 we have super clear transparency of the retail gas market and a pea-soup regulation of the electricity market. 

 

I feel a balanced level of sadness and anger regarding the current situation. I am considering some peaceful protesting outside Tynwald should this email fall on deaf ears. That's the last thing I should have to consider, but the idea seems to work. I have done it before and reluctantly might have to do it again. 

 

 My position as administrator at "Moneywatch IOM" Facebook group leads me to thinking I would have much support from the wider public regarding this matter. 

 

I look forward to understanding soon if a better, clearer and more importantly fairer system of regulation of the pricing structured at the MUA can be achieved. 

 

Yours Faithfully

Barry Murphy.

[finlo]

6 minutes ago, Bazza Smurf said:

Dear Ministers

 

The following is an open email and will be shared among the wider public on the 1st April 2023, the date of the first rise of electricity prices. I would hope to have had some positive feedback regarding this email before the next crippling rise on the electricity price at 1st July 2023. 

 

You will all be aware that Manx Utilities has announced a two-stage increase of the Island’s electricity prices.

 

The standard domestic rate tariff will increase from 22 to 28 pence per unit on 1 April 2023 with a further rise on 1 July 2023 taking prices to 34 pence per unit.

 

You will also be aware that when CURA were implemented as the regulator in charge of Island Energy (Manx Gas as it was then) back in 2020/2021, Tynwald was open to exploring the idea of bringing other utility companies under the scope of a regulator. In fact the idea has been documented in Hansard on a number of occasions. 

 

I would be interested in understanding what progress has been made exploring the idea of bringing the MUA pricing under an independent regulator such as CURA? 

 

Looking at the current scenario as simply a customer of both Island Energy and the MUA, it is my opinion that CURA has shown it's absolute worth as a regulator showing massive levels of transparency with its two price investigations into gas retail pricing namely one in July and one in January each year. 

 

What the public now understand is that if the wholesale price of gas goes up or down by a considerable amount over a steady considerable period, we expect a fall or rise on our gas bills accordingly. It's a simple clear system that all understand. Nothing at all complicated. 

 

Unfortunately however even with a continuous downtown in wholesale gas prices, today sitting at 119 pence per therm, we are told to simply suck up two major price rises on electricity so far with little or no explanation as to not only why but also and more importantly as to when the public might ever be hopeful of a reduction in price. The public should under a fair regulation system expect that if wholesale gas prices continue to lower, so should retail prices. That is how a fair market should work. 

 

My question today is how can COMIN currently justify the current vague and unfair pricing system at the MUA where cross subsidisation of some seems the normal, whereby Island Energy must comply with a price review twice a year whether they like it or not? Hammer some it seems but lay out the red carpet for its own. 

 

Essentially in 2023 we have super clear transparency of the retail gas market and a pea-soup regulation of the electricity market. 

 

I feel a balanced level of sadness and anger regarding the current situation. I am considering some peaceful protesting outside Tynwald should this email fall on deaf ears. That's the last thing I should have to consider, but the idea seems to work. I have done it before and reluctantly might have to do it again. 

 

 My position as administrator at "Moneywatch IOM" Facebook group leads me to thinking I would have much support from the wider public regarding this matter. 

 

I look forward to understanding soon if a better, clearer and more importantly fairer system of regulation of the pricing structured at the MUA can be achieved. 

 

Yours Faithfully

Barry Murphy.

Peaceful protest, we need to take a leaf out of the French's book!

[Sheldon]

3 minutes ago, finlo said:

Peaceful protest, we need to take a leaf out of the French's book!

Burn cars to keep warm?

[Non-Believer]

The MUA situation is an in-house Government shit pit of its own making, there will be extreme reluctance to have too much light shone into its many corners for the sake of embarrassment and questions being asked.

I personally believe that there is a great deal more going on than is ever made public, what with the connections into the gas supply/IEG and the scale of the debt itself. Please don't say that the accounts are public and show everything, accounts can manipulated to show anything you want.

What we do all know is that it is impacting every man, woman and business on this Island with worrying implications for the whole economy. As an example, my bill just received is double what it was this time last year with no perceptible change in consumption. For many people and businesses alike that is not sustainable.

Edited April 1, 2023 by Non-Believer
Typo

[finlo]

1 minute ago, Non-Believer said:

The MUA situation is an in-house Government shit pit of its own making, there will be extreme reluctance to have too much light shone into its many corners for the sake of embarrassment and questionsbeing asked.

I personally believe that there is a great deal more going on than is ever made public, what with the connections into the gas supply/IEG and the scale of the debt itself. Please don't say that the accounts are public and show everything, accounts can manipulated to show anything you want.

What we do all know is that it is impacting every man, woman and business on this Island with worrying implications for the whole economy. As an example, my bill just received is double what it was this time last year with no perceptible change in consumption. For many people and businesses alike that is not sustainable.

Did it make you feel all warm and fuzzy knowing you're paying for some chinless wonders pension?

[Bazza Smurf]

11 minutes ago, Sheldon said:

Burn cars to keep warm?

As long as it's not mine. I only have third party. Couldn't afford the fire bit!! 😄

[Non-Believer]

18 minutes ago, finlo said:

Did it make you feel all warm and fuzzy knowing you're paying for some chinless wonders pension?

No, it fucking boils my piss particularly given that, "it just happened like this" and no one is/was accountable. Plus being somewhat aware of the MUA T&Cs and culture...

[Happier diner]

1 hour ago, Non-Believer said:

The MUA situation is an in-house Government shit pit of its own making, there will be extreme reluctance to have too much light shone into its many corners for the sake of embarrassment and questions being asked.

I personally believe that there is a great deal more going on than is ever made public, what with the connections into the gas supply/IEG and the scale of the debt itself. Please don't say that the accounts are public and show everything, accounts can manipulated to show anything you want.

What we do all know is that it is impacting every man, woman and business on this Island with worrying implications for the whole economy. As an example, my bill just received is double what it was this time last year with no perceptible change in consumption. For many people and businesses alike that is not sustainable.

The accounts are in the public domain. To falsify accounts is a criminal offence. For clarity, is this what you are alleging?  Is this the Executive, the non executive board and the financial auditors (Grant Thornton). Are you seriously alleging that all of these are committing a fraud? Have you consulted the police and presented your evidence?

[finlo]

2 minutes ago, Happier diner said:

The accounts are in the public domain. To falsify accounts is a criminal offence. For clarity, is this what you are alleging?  Is this the Executive, the non executive board and the financial auditors (Grant Thornton). Are you seriously alleging that all of these are committing a fraud? Have you consulted the police and presented your evidence?

A bit like stealing our old age pension to "balance the books" every budget day isn't in anyway iffy?

[Happier diner]

3 minutes ago, finlo said:

A bit like stealing our old age pension to "balance the books" every budget day isn't in anyway iffy?

Not sure the 2 things are related.

[Non-Believer]

Just now, Happier diner said:

Not sure the 2 things are related.

It's exactly the same principle, Troll. Your eternal defence of all things Govt conduct must pay well on the Govt payroll, does it?

This Govt has and will continue to bleed the taxpayers dry rather than ever admitting to failure, incompetence or wrong doing, even the recent past is littered with examples.

Normal hardworking people and businesses alike are being shafted here, when those businesses are folding and when people are losing their jobs because of this, Govt will continue to wring its hands and say, "We can't save/help everybody". Whilst continuing it's own survival, culture and growth strategy of course.

I have posted this question before. Rather than putting the economy on the line with this, why not settle the debts out of the "billions in reserves"?