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Residents urged to expect a very tough 12 months


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13 hours ago, snowman said:

Christian is the elected member for Douglas South. Also elected in Douglas South was Maltby (Labour)

But most of the Douglas South Corpy Wallas voted for Maltby because she inherited her dads voters.

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The latest from Big Rob C 

 

Cost of Living Crisis – further overview for Onchan Constituents 

Grab a coffee and please take a moment to read this post on the energy crisis, thank you…
 
Back in March I painted a very difficult scene for constituents in respect of the cost of living crisis that was starting to unfold all around us.

At the time I said our island needed time to recover from Covid-19, which had caused so much disruption since March 2020, along with all of the regulations and red tape changes involving the UK leaving the EU on 1st January 2020. 

On top of all that we now also have to deal with the consequences of Russia invading Ukraine, which is such an unnecessary war, and a war that is displacing millions of decent people from their homes and country. 

The World Bank reported back then that the war is a catastrophe for the global economy, and that household costs will be squeezed significantly in 2022, and possibly going into 2023 – this is now becoming a reality.

Over the past six months we have seen inflation and mortgage rates starting to increase significantly, along with a general increase in all costs and household goods, especially utility costs. 

This week Manx Gas announced a further 43.9% increase in tariffs, and according to the Isle of Man Newspapers their tariffs have increased by a whopping 192% during the last year, which is mind blowing and terrifying for those customers that will be relying heavily on gas to heat their homes this winter. 

Manx Gas purchase around 10 million therms of natural gas each year and Manx Utilities on the other hand purchase between 30 and 40 million therms of natural gas, which is used to generate electricity for the island – more on Manx Utilities in a moment. 

As I mentioned previously, the price of natural gas started to increase back in March / April 2021, and although the price for a therm of natural gas has fluctuated greatly during that period, the price for a therm of natural gas for this autumn and winter period looks set to be around 400p to 500p – if not significantly higher. 

To put that into context for constituents, in March 2021 we were paying an average price of around 50p per therm, which had been a steady price for almost 10 years.

In fact it is now getting to the point that it is almost impossible to forward purchase natural gas given the market conditions, especially when the autumn and winter price for 2023, 2024 and 2025 is not even worth considering at the moment. 

In March this year Tynwald voted in favour of the Gas (Tariff Fixing) (Parameters) Regulations 2022 with only myself voting against the regulations.

As I mentioned in my short speech, I wasn’t against regulations being imposed on Manx Gas, but I seriously questioned the 5.45% WACC, which represents around £2.2 million return – however, this figure is hard to validate because so little information is in the public domain. 

At the time I seriously questioned if that represented a fair return in the middle of an energy crisis – again I question that level of return, but I fully acknowledge that it is certainly better than the 9.9% ROCE that Manx Gas enjoyed previously from 2015. 

https://www.tynwald.org.im/business/hansard/20002020/t220315.pdf#page139

I also have to acknowledge that Manx Gas is a private company and they are entitled to make a profit, but the question remains what is considered a reasonable level of profit in the current circumstances. 

That said, Manx Utilities and Domestic Home Heating Oil companies are not exempt from these unprecedented market forces around the price of energy at the moment. 

As I mentioned previously Manx Utilities as a public utility company purchases between 30 and 40 million therms of natural gas, which is used to generate electricity for the island. 

The authority has been under extreme financial pressure over the past 17 months, and although we managed to secure around 50% of our natural gas supply in the last financial year at a cost of around 47p per therm, the remaining 50% has come at a considerable cost to the authority. 

We also have to remind ourselves that Manx Utilities did not apply any tariff increases during the 2021/22 financial year, but electricity tariffs did increase by 15% in April and by a further 15% in July this year. 

Since taking up the role of Chairman in November 2021 the Board and the Executive have been heavily focused on financial survival and trying to support valuable customers. I think the Manx public will be shocked to see the level of losses recorded in the financial statements for the period ending March 2022, which highlights the lengths that we have gone to to try and shield our domestic and business customers during this energy cost crisis. 

At the same time the Manx Government has also paid out around £7.8 million via winter fuel bonus, energy and family support payments, along with long term support payments and of course the Manx Gas rebate, which was £58. 

I know that will be of little comfort for those families and individuals who always appear to be sitting just outside the support system, and that is why Treasury has an almost impossible job over the summer recess when looking at where to target further support this winter. 

Some of my Tynwald colleagues are calling for Tynwald and Keys to be reconvened in August or September, but I personally would prefer the Treasury Minister to deliver a solid mini-budget in October or to make a statement at that time, which clearly outlines any further support that will be rolled out during the months of November, December, January, and possibly even February because that is when this support will be most needed. 

I also know it is difficult for those constituents on a low or fixed income at the moment, but please take some comfort that Manx Utilities have been supplying some of the lowest domestic electricity tariffs in the whole of the British Isles over the past 12 months. 
Electricity tariffs on the island for Domestic and Pre-Payment customers are currently 22p per kWh while the UK average is 28p per kWh, and the lowest I can find in the UK is the North West at 25.8p per kWh. 

All of that said, it would be wrong of me not to mention that electricity tariffs look set to increase significantly in the autumn, a point that the Chief Minister did highlight on Manx Radio’s Mannin Line a few weeks ago.  

This is simply due to the price of natural gas for this autumn and winter period and the fact that it has been almost impossible to forward purchase natural gas at a reasonable price, which would have given us the financial sustainability that we desperately need in this market. 

Again, if any constituents have any questions, then please do not hesitate to drop me a message or alternatively I am happy to give anyone a quick call to discuss further.

I now have everything crossed for a very mild autumn and winter period….

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5 hours ago, Roxanne said:

If ever there was time to encourage more residents to move here - then this isn't it.

 

5 hours ago, Roxanne said:

If ever there was time to encourage more residents to move here - then this isn't it.

I don't believe that we need more residents, just fewer CS, four local authorities, smaller govt, all island voting and a concern for local residents and support for front line workers. 

There's probably somethings I've left out.

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1 minute ago, doc.fixit said:

 

I don't believe that we need more residents, just fewer CS, four local authorities, smaller govt, all island voting and a concern for local residents and support for front line workers. 

There's probably somethings I've left out.

One local authority is plenty.

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12 minutes ago, 0bserver said:

The latest from Big Rob C 

 

Cost of Living Crisis – further overview for Onchan Constituents 

Grab a coffee and please take a moment to read this post on the energy crisis, thank you…
 
Back in March I painted a very difficult scene for constituents in respect of the cost of living crisis that was starting to unfold all around us.

At the time I said our island needed time to recover from Covid-19, which had caused so much disruption since March 2020, along with all of the regulations and red tape changes involving the UK leaving the EU on 1st January 2020. 

On top of all that we now also have to deal with the consequences of Russia invading Ukraine, which is such an unnecessary war, and a war that is displacing millions of decent people from their homes and country. 

The World Bank reported back then that the war is a catastrophe for the global economy, and that household costs will be squeezed significantly in 2022, and possibly going into 2023 – this is now becoming a reality.

Over the past six months we have seen inflation and mortgage rates starting to increase significantly, along with a general increase in all costs and household goods, especially utility costs. 

This week Manx Gas announced a further 43.9% increase in tariffs, and according to the Isle of Man Newspapers their tariffs have increased by a whopping 192% during the last year, which is mind blowing and terrifying for those customers that will be relying heavily on gas to heat their homes this winter. 

Manx Gas purchase around 10 million therms of natural gas each year and Manx Utilities on the other hand purchase between 30 and 40 million therms of natural gas, which is used to generate electricity for the island – more on Manx Utilities in a moment. 

As I mentioned previously, the price of natural gas started to increase back in March / April 2021, and although the price for a therm of natural gas has fluctuated greatly during that period, the price for a therm of natural gas for this autumn and winter period looks set to be around 400p to 500p – if not significantly higher. 

To put that into context for constituents, in March 2021 we were paying an average price of around 50p per therm, which had been a steady price for almost 10 years.

In fact it is now getting to the point that it is almost impossible to forward purchase natural gas given the market conditions, especially when the autumn and winter price for 2023, 2024 and 2025 is not even worth considering at the moment. 

In March this year Tynwald voted in favour of the Gas (Tariff Fixing) (Parameters) Regulations 2022 with only myself voting against the regulations.

As I mentioned in my short speech, I wasn’t against regulations being imposed on Manx Gas, but I seriously questioned the 5.45% WACC, which represents around £2.2 million return – however, this figure is hard to validate because so little information is in the public domain. 

At the time I seriously questioned if that represented a fair return in the middle of an energy crisis – again I question that level of return, but I fully acknowledge that it is certainly better than the 9.9% ROCE that Manx Gas enjoyed previously from 2015. 

https://www.tynwald.org.im/business/hansard/20002020/t220315.pdf#page139

I also have to acknowledge that Manx Gas is a private company and they are entitled to make a profit, but the question remains what is considered a reasonable level of profit in the current circumstances. 

That said, Manx Utilities and Domestic Home Heating Oil companies are not exempt from these unprecedented market forces around the price of energy at the moment. 

As I mentioned previously Manx Utilities as a public utility company purchases between 30 and 40 million therms of natural gas, which is used to generate electricity for the island. 

The authority has been under extreme financial pressure over the past 17 months, and although we managed to secure around 50% of our natural gas supply in the last financial year at a cost of around 47p per therm, the remaining 50% has come at a considerable cost to the authority. 

We also have to remind ourselves that Manx Utilities did not apply any tariff increases during the 2021/22 financial year, but electricity tariffs did increase by 15% in April and by a further 15% in July this year. 

Since taking up the role of Chairman in November 2021 the Board and the Executive have been heavily focused on financial survival and trying to support valuable customers. I think the Manx public will be shocked to see the level of losses recorded in the financial statements for the period ending March 2022, which highlights the lengths that we have gone to to try and shield our domestic and business customers during this energy cost crisis. 

At the same time the Manx Government has also paid out around £7.8 million via winter fuel bonus, energy and family support payments, along with long term support payments and of course the Manx Gas rebate, which was £58. 

I know that will be of little comfort for those families and individuals who always appear to be sitting just outside the support system, and that is why Treasury has an almost impossible job over the summer recess when looking at where to target further support this winter. 

Some of my Tynwald colleagues are calling for Tynwald and Keys to be reconvened in August or September, but I personally would prefer the Treasury Minister to deliver a solid mini-budget in October or to make a statement at that time, which clearly outlines any further support that will be rolled out during the months of November, December, January, and possibly even February because that is when this support will be most needed. 

I also know it is difficult for those constituents on a low or fixed income at the moment, but please take some comfort that Manx Utilities have been supplying some of the lowest domestic electricity tariffs in the whole of the British Isles over the past 12 months. 
Electricity tariffs on the island for Domestic and Pre-Payment customers are currently 22p per kWh while the UK average is 28p per kWh, and the lowest I can find in the UK is the North West at 25.8p per kWh. 

All of that said, it would be wrong of me not to mention that electricity tariffs look set to increase significantly in the autumn, a point that the Chief Minister did highlight on Manx Radio’s Mannin Line a few weeks ago.  

This is simply due to the price of natural gas for this autumn and winter period and the fact that it has been almost impossible to forward purchase natural gas at a reasonable price, which would have given us the financial sustainability that we desperately need in this market. 

Again, if any constituents have any questions, then please do not hesitate to drop me a message or alternatively I am happy to give anyone a quick call to discuss further.

I now have everything crossed for a very mild autumn and winter period….

Err, yes, and? What's the solution then?

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3 minutes ago, doc.fixit said:

Err, yes, and? What's the solution then?

There is no solution all he wanted to highlight was

“Since taking up the role of Chairman in November 2021 the Board and the Executive have been heavily focused on financial survival and trying to support valuable customers. I think the Manx public will be shocked to see the level of losses recorded in the financial statements for the period ending March 2022, which highlights the lengths that we have gone to to try and shield our domestic and business customers during this energy cost crisis. 

At the same time the Manx Government has also paid out around £7.8 million via winter fuel bonus, energy and family support payments, along with long term support payments and of course the Manx Gas rebate, which was £58.” 

 

 

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53 minutes ago, doc.fixit said:

Err, yes, and? What's the solution then?

Spuds and herrin' yessir  

 

50 minutes ago, doc.fixit said:

Not sure about that, the rural areas have different needs to the towns, ( sorry the 'city' and larger towns).

We're a tiny island. Rural and urban areas have the same needs. 

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56 minutes ago, Bandits said:

There is no solution all he wanted to highlight was

“Since taking up the role of Chairman in November 2021 the Board and the Executive have been heavily focused on financial survival and trying to support valuable customers. I think the Manx public will be shocked to see the level of losses recorded in the financial statements for the period ending March 2022, which highlights the lengths that we have gone to to try and shield our domestic and business customers during this energy cost crisis. 

At the same time the Manx Government has also paid out around £7.8 million via winter fuel bonus, energy and family support payments, along with long term support payments and of course the Manx Gas rebate, which was £58.” 

 

 

How did the Mua have the millions of pounds in their account for the last gas rebate?

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5 hours ago, Bandits said:

But most of the Douglas South Corpy Wallas voted for Maltby because she inherited her dads voters.

It's interesting that people always attack her like this, but no one levels the same accusation against Alf Cannan as inheriting his father's voters.  And yet Cannan, unlike Maltby, succeeded immediately after his father in a single-member seat, while Cretney hadn't represented Douglas South since 2015, six years before his daughter stood.

That said, I think the MLP has (as so often) failed to seize its opportunities on this topic.

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2 hours ago, 0bserver said:

The latest from Big Rob C 

 

Cost of Living Crisis – further overview for Onchan Constituents 

Grab a coffee and please take a moment to read this post on the energy crisis, thank you…
 
Back in March I painted a very difficult scene for constituents in respect of the cost of living crisis that was starting to unfold all around us.

At the time I said our island needed time to recover from Covid-19, which had caused so much disruption since March 2020, along with all of the regulations and red tape changes involving the UK leaving the EU on 1st January 2020. 

On top of all that we now also have to deal with the consequences of Russia invading Ukraine, which is such an unnecessary war, and a war that is displacing millions of decent people from their homes and country. 

The World Bank reported back then that the war is a catastrophe for the global economy, and that household costs will be squeezed significantly in 2022, and possibly going into 2023 – this is now becoming a reality.

Over the past six months we have seen inflation and mortgage rates starting to increase significantly, along with a general increase in all costs and household goods, especially utility costs. 

This week Manx Gas announced a further 43.9% increase in tariffs, and according to the Isle of Man Newspapers their tariffs have increased by a whopping 192% during the last year, which is mind blowing and terrifying for those customers that will be relying heavily on gas to heat their homes this winter. 

Manx Gas purchase around 10 million therms of natural gas each year and Manx Utilities on the other hand purchase between 30 and 40 million therms of natural gas, which is used to generate electricity for the island – more on Manx Utilities in a moment. 

As I mentioned previously, the price of natural gas started to increase back in March / April 2021, and although the price for a therm of natural gas has fluctuated greatly during that period, the price for a therm of natural gas for this autumn and winter period looks set to be around 400p to 500p – if not significantly higher. 

To put that into context for constituents, in March 2021 we were paying an average price of around 50p per therm, which had been a steady price for almost 10 years.

In fact it is now getting to the point that it is almost impossible to forward purchase natural gas given the market conditions, especially when the autumn and winter price for 2023, 2024 and 2025 is not even worth considering at the moment. 

In March this year Tynwald voted in favour of the Gas (Tariff Fixing) (Parameters) Regulations 2022 with only myself voting against the regulations.

As I mentioned in my short speech, I wasn’t against regulations being imposed on Manx Gas, but I seriously questioned the 5.45% WACC, which represents around £2.2 million return – however, this figure is hard to validate because so little information is in the public domain. 

At the time I seriously questioned if that represented a fair return in the middle of an energy crisis – again I question that level of return, but I fully acknowledge that it is certainly better than the 9.9% ROCE that Manx Gas enjoyed previously from 2015. 

https://www.tynwald.org.im/business/hansard/20002020/t220315.pdf#page139

I also have to acknowledge that Manx Gas is a private company and they are entitled to make a profit, but the question remains what is considered a reasonable level of profit in the current circumstances. 

That said, Manx Utilities and Domestic Home Heating Oil companies are not exempt from these unprecedented market forces around the price of energy at the moment. 

As I mentioned previously Manx Utilities as a public utility company purchases between 30 and 40 million therms of natural gas, which is used to generate electricity for the island. 

The authority has been under extreme financial pressure over the past 17 months, and although we managed to secure around 50% of our natural gas supply in the last financial year at a cost of around 47p per therm, the remaining 50% has come at a considerable cost to the authority. 

We also have to remind ourselves that Manx Utilities did not apply any tariff increases during the 2021/22 financial year, but electricity tariffs did increase by 15% in April and by a further 15% in July this year. 

Since taking up the role of Chairman in November 2021 the Board and the Executive have been heavily focused on financial survival and trying to support valuable customers. I think the Manx public will be shocked to see the level of losses recorded in the financial statements for the period ending March 2022, which highlights the lengths that we have gone to to try and shield our domestic and business customers during this energy cost crisis. 

At the same time the Manx Government has also paid out around £7.8 million via winter fuel bonus, energy and family support payments, along with long term support payments and of course the Manx Gas rebate, which was £58. 

I know that will be of little comfort for those families and individuals who always appear to be sitting just outside the support system, and that is why Treasury has an almost impossible job over the summer recess when looking at where to target further support this winter. 

Some of my Tynwald colleagues are calling for Tynwald and Keys to be reconvened in August or September, but I personally would prefer the Treasury Minister to deliver a solid mini-budget in October or to make a statement at that time, which clearly outlines any further support that will be rolled out during the months of November, December, January, and possibly even February because that is when this support will be most needed. 

I also know it is difficult for those constituents on a low or fixed income at the moment, but please take some comfort that Manx Utilities have been supplying some of the lowest domestic electricity tariffs in the whole of the British Isles over the past 12 months. 
Electricity tariffs on the island for Domestic and Pre-Payment customers are currently 22p per kWh while the UK average is 28p per kWh, and the lowest I can find in the UK is the North West at 25.8p per kWh. 

All of that said, it would be wrong of me not to mention that electricity tariffs look set to increase significantly in the autumn, a point that the Chief Minister did highlight on Manx Radio’s Mannin Line a few weeks ago.  

This is simply due to the price of natural gas for this autumn and winter period and the fact that it has been almost impossible to forward purchase natural gas at a reasonable price, which would have given us the financial sustainability that we desperately need in this market. 

Again, if any constituents have any questions, then please do not hesitate to drop me a message or alternatively I am happy to give anyone a quick call to discuss further.

I now have everything crossed for a very mild autumn and winter period….

In my opinion these are sensible and honest words. Not what anyone wants to hear, but they are hard facts. 

Can't really blame Callister for a war. The IOM is only suffering the same as everywhere else. 

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