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Manx Gas MEGA Price Rise


James Blonde
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5 minutes ago, Roger Mexico said:

Not as much as they'll put in the accounts.  I suspect this is going to be used to load the company with more debt so they can increase profits.

But as profit is 5% on assets employed it can’t work like that?

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44 minutes ago, Asthehills said:

Do people actually read the stuff in the press?

They have identified that a company that only sells gas isn’t viable long term.

They have identified that by being called “Manx Gas” it really suggests they only sell gas.

They want to diversify and give people options to lower their gas usage.

The level of bleating from people who seem to genuinely think Manx Gas have any control over wholesale gas prices is embarrassing, as is the hate for everything they try and do from people who clearly have no clue.

 

If Island Energy suddenly went ‘green’ and actually invested in other forms of renewables, they would be competing with Manx Utilities. I doubt though that Island Energy would lower their pricing, in fact they will use the pricing to extract the maximum profit from a consumer, where choice is non existent. 

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33 minutes ago, 2112 said:

If Island Energy suddenly went ‘green’ and actually invested in other forms of renewables, they would be competing with Manx Utilities. I doubt though that Island Energy would lower their pricing, in fact they will use the pricing to extract the maximum profit from a consumer, where choice is non existent. 

Their profit is predetermined at 5% of assets employed as has already been pointed out a number of times and monitored.

They don’t have free reign to increase profits as people seem to think they do.

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7 hours ago, offshoremanxman said:

The formula for ROC is here it does factor in debt position so there would be nothing stopping them loading more up. 

https://www.investopedia.com/ask/answers/09/return-on-equity-vs-return-on-capital.asp

Yes, but haven’t they been moved by the regulator from 9.9% on capital employed to 5% on asset base?

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Chairman Rob, I think it was him, stated that it was 5% EBITDA margin. I was surprised whoever it was knew about EBITDA!

The regs don't mention ROC or WACC.

Regardless, Manx gas are operating at a profit whatever that percentage is.  

Gas customers are also subsiding gas used by government.

Screenshot_2022-09-05-19-00-38-51_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

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7 minutes ago, cissolt said:

Chairman Rob, I think it was him, stated that it was 5% EBITDA margin. I was surprised whoever it was knew about EBITDA!

The regs don't mention ROC or WACC.

Regardless, Manx gas are operating at a profit whatever that percentage is.  

Gas customers are also subsiding gas used by government.

Screenshot_2022-09-05-19-00-38-51_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

Are they?

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43 minutes ago, cissolt said:

Chairman Rob, I think it was him, stated that it was 5% EBITDA margin. I was surprised whoever it was knew about EBITDA!

The regs don't mention ROC or WACC.

Regardless, Manx gas are operating at a profit whatever that percentage is.  

Gas customers are also subsiding gas used by government.

Screenshot_2022-09-05-19-00-38-51_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

Actually they do mention WACC at 8(j). And the regs you quote are the regs for fixing the retail price rather than the profit

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1 hour ago, cissolt said:

Chairman Rob, I think it was him, stated that it was 5% EBITDA margin. I was surprised whoever it was knew about EBITDA!

The regs don't mention ROC or WACC.

Regardless, Manx gas are operating at a profit whatever that percentage is.  

Gas customers are also subsiding gas used by government.

Screenshot_2022-09-05-19-00-38-51_e2d5b3f32b79de1d45acd1fad96fbb0f.jpg

Those are the regs for how the regulator sets the retail price. And WACC is in there at 8(j)

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There was a really good programme on before the Villages by the sea featuring Laxey tonight regarding energy in different forms.   The subsidies that the British Government were giving to wind farms despite them making very healthy profits was costing householders a lot of money.   I did not see I all unfortunately as I just switched on prior to the Laxey village one.

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6 hours ago, hissingsid said:

There was a really good programme on before the Villages by the sea featuring Laxey tonight regarding energy in different forms.   The subsidies that the British Government were giving to wind farms despite them making very healthy profits was costing householders a lot of money.   I did not see I all unfortunately as I just switched on prior to the Laxey village one.

It’s on iPlayeR and was Panorama.

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