Manx Gas

Summary

The requester sought all written communications between Manx Gas and the Chief Minister since October 2021, but the Cabinet Office refused to disclose the information citing a breach of confidence exemption.

Key Facts

• The request was received on 10 January 2022 and the outcome was determined on 9 March 2022.
• The Cabinet Office withheld information under section 26 of the Freedom of Information Act.
• The authority stated that disclosure would constitute an actionable breach of confidence.
• The request specifically targeted communications between Manx Gas and Chief Minister Alfred Cannan.
• The case outcome was recorded as 'Not upheld'.

Data Disclosed

• 2022-01-10
• 2022-05-10
• 2022-03-09
• 2021-10-12
• 2021-12-23
• 2021-12-31
• 2021-11-29
• 2021-08
• 2021-09
• 2021-10
• 2022-01
• £1.10 per therm
• 2.1p per unit
• £4.26 per therm
• £1.55
• £4.49
• £2.20
• 00721V
• 2181869

Exemptions Cited

• Section 26 of the Act (Breach of confidence)

Original Request

I seek the publication of all written communications, in either letter or email form, between Manx Gas and the Chief Minister since he took office on October 12 2021.

Data Tables (1)

Full Response Text

Manx Utilities • PO Box 177 • Douglas • Isle of Man • IM99 1PS e: phil.king@manxutilities.im • t: 01624 687 797 • www.manxutilities.im

Manx Gas Limited Murdoch House
South Quay Douglas
Isle of Man
IM1 5PA

31 December 2021

BY EMAIL

Dear Jo RE: RECENT REQUEST FOR PRICE INCREASE – ISLE OF MAN I refer to your letter dated 23 December 2021. Please note I have been on leave and have only just received the letter. During this time there does not appear to have been any attempt by you to make contact with my office, either using the contact details on my email ‘out of office’ notification or through another one of my colleagues. Much of your letter covers comments about the regulatory processes in place between Manx Gas and the Communications and Utilities Regulatory Authority (CURA). These are arrangements which Manx Utilities is not a party to and so I am unable to respond to these comments in detail. However, I note that CURA is a duly appointed independent regulator and it is usual for regulators to consider the interests of multiple stakeholders (often conflicting) in an impartial manner, free from political influence.

Page 2 of 3

You will be aware that Manx Gas is in contract with Manx Utilities for the supply of natural gas, specifically through the letters between Manx Gas and the Manx Electricity Authority (now the Manx Utilities Authority) dated 14 December 2009, 29 September 2011 and 31 October 2012, and reinforced by the trading practices between us. Manx Utilities purchases natural gas for Manx Gas and the costs of providing this gas to Manx Gas is recharged to Manx Gas under the terms of these letters. This includes recharging Manx Gas for the purchase cost of the gas at the rates paid by Manx Utilities to its supplier without a margin or discount being applied.

Page 3 of 3

Yours sincerely

Phil King Chief Executive

cc:
Hon R Callister MHK, Chair of Manx Utilities
Hon A Cannan MHK, Chief Minister pp.

Registered in the Isle of Man No: 00721V
Registered Office as above Page 1 of 2

Director: I Plenderleith, Gas throughout the Isle of Man by mains network or Kosangas

Manx Gas Limited Murdoch House South Quay Douglas Isle of Man IM1 5PA Telephone 01624 644444

23rd December 2021

Phil King CEO, Manx Utilities PO Box 177 Douglas Isle of Man IM99 1PS

Cc: Hon Alfred Cannan MHK

Dear Phil

Re: Recent request for price increase – Isle of Man

I write to you following the recent request to CURA to consider a price increase for gas, as a result of the substantial increase of wholesale gas prices in the market since August 2021. The initial price increase was requested by us in August and, at the time, the market was at a forward rate of c£1.10 per therm for 2021. The recommendation of the price increase of 2.1p per unit was made by CURA on this basis. This was not implemented until the middle of October, due to the delay in review and implementation, which means that the full cash benefit will not be seen until January 2022. Since the recommendation from CURA the market has continued to rise, with the winter forward rate at c£4.26 per therm. Since September the spot market has fluctuated between £1.55 and £4.49; since the middle of November, the spot market has consistently been more than £2.20.

On this basis we wrote to CURA on 29th November to request a further review, using the same methodology already used in August.

Registered in the Isle of Man No: 00721V
Registered Office as above Page 2 of 2

Director: I Plenderleith, Gas throughout the Isle of Man by mains network or Kosangas

,

We request your urgent attention in this matter, as this situation cannot be sustained unless a resolution is found quickly. We will be writing to CURA to highlight that their analysis of the situation is incorrect, but given the timescales and CURA’s process, we cannot now rely on them changing their decision in a timely manner. We ask that you work with us to maintain supply to the Isle of Man during these unique market conditions and recognise that Manx Gas are in this situation as a result of the limitations of the consultation process for regulation. We also recognise that CURA is trying to protect customers, especially vulnerable customers: however the solution suggested is not sustainable.

Jo Cox CEO, Islands Energy Group

Government Office Douglas Isle of Man IM1 3PN Telephone: (+44) 01624 686244 Website: www.gov.im/co

Our ref: 2181869 9 March 2022

Dear ###

We write further to your request which was received on 10 January 2022 and which states:

"I seek the publication of all written communications, in either letter or email form, between Manx Gas and the Chief Minister since he took office on October 12 2021."

While our aim is to provide information whenever possible, in this instance some of the information is absolutely exempt under section 26 of the Act, as we consider disclosure of the information to the public would constitute an actionable breach of confidence. Please quote the reference number 2181869 in any future communications.

Your right to request a review

If you are unhappy with this response to your freedom of information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post.

An electronic version of our complaint form can be found by going to our website at https://services.gov.im/freedom-of-information/Review . If you would like a paper version of our complaint form to be sent to you by post, please contact me and I will be happy to arrange for this. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded. If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on; 1. Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or 2. Whether we are justified in refusing to give you the information requested.
In response to an application for review, the Information Commissioner may, at any time, attempt to resolve a matter by negotiation, conciliation, mediation or another form of alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision.

More detailed information on your right to a review can be found on the Information Commissioner’s website at www.inforights.im. Should you have any queries concerning this letter, please do not hesitate to contact me. Further information about freedom of information requests can be found at www.gov.im/foi. I will now close your request as of this date.

Yours sincerely