Manx Gas

Summary

The request sought communications and meeting minutes between Manx Gas and Manx Utilities regarding price increases, gas purchasing, and outstanding debts from September 2021 to February 2022. The authority released some email correspondence highlighting disputes over meeting schedules and unpaid invoices, but the outcome was partially exempt.

Key Facts

• Manx Utilities Finance Director Simon Clague stated he would not reschedule meetings unless Manx Gas cleared outstanding invoices.
• Manx Gas representatives requested to move a scheduled meeting from Thursday to Wednesday due to travel constraints.
• Islands Energy Group CFO Gareth Fooks sent a letter regarding outstanding bills on January 25, 2022.
• Communications indicate a deadline for Manx Gas was expiring in early January 2022.
• The response included 37 pages across 4 documents.

Data Disclosed

• September 1 2021
• February 21 2022
• 07/03/22
• 25 January 2022
• 19 January 2022
• 18 January 2022
• 17 January 2022
• 15 January 2022
• 14 January 2022
• 8:30am
• 11:00am till 12:00pm
• 37 pages
• 4 documents

Original Request

I seek the publication of all written communications between Manx Gas and Manx Utilities between September 1 2021 and February 21 2022 - clarification received 07/03/22 communications specifically this related to price increases, purchasing of gas and any outstanding debts or defaults on payments. I further seek the written minutes of all meetings held, either in person or virtually, between Manx Gas and Manx Utilities. Finally I seek written confirmation from Manx Utilities as to whether Manx Gas has paid all bills owed to Manx Utilities between September 1 2021 and February 21 2022 on time and in full.

Data Tables (1)

Full Response Text

1 From: Gareth Fooks Gareth.Fooks@i-e-g.com Sent: 25 January 2022 08:12 To: Clague, Simon (MU) Cc: Jo Cox; King, Philip Subject: IEG Letter re o/s bills Attachments: IEG letter to MUA.pdf Caution: This email is from an external sender. Please take care before opening any attachments or  following any links.   Dear Simon,  Apologies that this didn’t come yesterday but please now find attached the letter as discussed.  If you could share the rebate wording once ready that would be appreciated.  Kind Regards  Gareth Fooks  CFO  Islands Energy Group Limited  Energy Centre, Admiral Park, St Peter Port, Guernsey, GY1 2BB  m:    e: gareth.fooks@i‐e‐g.com  w: www.gsygas.com / www.jsygas.com / www.manxgas.com  Proud sponsors of the Guernsey Commonwealth Games Teams  1 From: Clague, Simon (MU) Simon.Clague@manxutilities.im   Sent: 19 January 2022 21:14  To: Jo Cox Jo.Cox@i‐e‐g.com; Gareth Fooks gareth.fooks@islandsenergygroup.com  Cc: King, Philip Philip.King@manxutilities.im; Ali Bones ali.bones@i‐e‐g.com  Subject: RE: Meeting  ** PHISHING WARNING, THIS E‐MAIL IS FROM AN EXTERNAL SENDER. CHECK AUTHENTICITY! ** Hi Jo – thanks for your email – I appreciate you’re likely to have many demands on your time. It would be useful if we could have a quick call tomorrow to get a brief verbal update on the position. Please let me know when would be best for you.  Regards  Simon  Simon Clague  Finance Director  SUSTAINABLY DELIVERING  LIFE’S ESSENTIAL SERVICES  FOR OUR ISLAND  Respect  |  Integrity  |  Teamwork  |  Excellence t:        +44 (0)1624    e:       simon.clague@manxutilities.im  w:      www.manxutilities.im  687687 1 From: Clague, Simon (MU) Sent: 18 January 2022 17:23 To: Gareth Fooks Subject: MU/MG meeting Hi Gareth – you’ll be aware that the deadline expires in the next couple of days. We were due to meet on Thursday morning and this meeting is to be rescheduled. When we last met you said you were going to put some information together and send it to us – do you know when you expect to be in a position to send this through?
Regards Simon Simon Clague  Finance Director  SUSTAINABLY DELIVERING  LIFE’S ESSENTIAL SERVICES  FOR OUR ISLAND  Respect  |  Integrity  |  Teamwork  |  Excellence  t:        +44 (0)1624    e:       simon.clague@manxutilities.im  w:      www.manxutilities.im  687687 1 From: Clague, Simon (MU) Sent: 18 January 2022 17:21 To: 'Ali Bones' Cc: King, Philip Subject: RE: Availability - afternoon 19th Jan Dear Ali – have you had an opportunity to discuss any alternative dates for this? You will appreciate the importance of this matter to us and our need to understand Manx Gas’s plans in respect of contractual arrangements and the outstanding payments. Kind regards Simon From: Ali Bones ali.bones@i‐e‐g.com   Sent: 17 January 2022 14:53  To: Clague, Simon (MU) Simon.Clague@manxutilities.im  Cc: King, Philip Philip.King@manxutilities.im  Subject: RE: Availability ‐ afternoon 19th Jan   Caution: This email is from an external sender. Please take care before opening any attachments or  following any links.   Dear Simon,  Unfortunately we are unable to make the 8:30am meeting on Thursday, therefore please can you remove the invite  for this week’s meeting and we will offer up some alternative dates to do a team’s meeting in due course. I will work  with my colleague and come back to you with dates shortly.  Kind regards  Ali   Ali Bones  Executive Assistant to Jo Cox, Group CEO  Islands Energy Group Limited  Energy Centre, Admiral Park, St Peter Port, Guernsey, GY1 2BB  m:  e: ali.bones@i‐e‐g.com  From: Clague, Simon (MU) Simon.Clague@manxutilities.im   Sent: 15 January 2022 14:14  To: Ali Bones ali.bones@i‐e‐g.com  2 Cc: King, Philip Philip.King@manxutilities.im  Subject: RE: Availability ‐ afternoon 19th Jan   ** PHISHING WARNING, THIS E‐MAIL IS FROM AN EXTERNAL SENDER. CHECK AUTHENTICITY! ** Hi Ali – We’ve agreed a meeting date and time for Thursday morning. Unless MG is willing to clear its outstanding invoices then I am not prepared to change my arrangements to meet on Wednesday.  Regards  Simon  From: Ali Bones ali.bones@i‐e‐g.com   Sent: 14 January 2022 14:54  To: Clague, Simon (MU) Simon.Clague@manxutilities.im; King, Philip Philip.King@manxutilities.im  Subject: RE: Availability ‐ afternoon 19th Jan   Caution: This email is from an external sender. Please take care before opening any attachments or  following any links.  Hi Simon,  Thank you for your email below and apologies that it has taken this long to reply.  You are correct in thinking that we have something in the calendar for 8:30am on Thursday morning, however as  Gareth will be in the airport it would be preferable to hold a face to face on the Wednesday (19th) I know that you  have something non‐work related on Wednesday afternoon but how does 11:00am till 12:00pm face to face on  Wednesday work for yourself and Philip?  Many thanks  Ali   Ali Bones  Executive Assistant to Jo Cox, Group CEO  Islands Energy Group Limited  Energy Centre, Admiral Park, St Peter Port, Guernsey, GY1 2BB  m:  e: ali.bones@i‐e‐g.com  From: Clague, Simon (MU) Simon.Clague@manxutilities.im   Sent: 11 January 2022 20:19  To: Jo Cox Jo.Cox@i‐e‐g.com; King, Philip Philip.King@manxutilities.im  1 From: Clague, Simon (MU) Sent: 07 January 2022 17:36 To: 'Jo Cox'; Ali Bones Cc: King, Philip; Callister, Rob; Cannan, Alfred Subject: RE: Manx Gas letter dated 23 December 2021 Attachments: 2022-01-07 PK-MG Response meeting request.pdf Good evening Jo – please find attached a letter in response to your email to Phil last night. We’ll be happy to meet in person when you’re over but need to meet much more urgently in the meantime. I’ll send a calendar appointment for Monday via Teams. Regards Simon From: Jo Cox Jo.Cox@i‐e‐g.com   Sent: 06 January 2022 19:59  To: Clague, Simon (MU) Simon.Clague@manxutilities.im; Ali Bones ali.bones@i‐e‐g.com  Cc: King, Philip Philip.King@manxutilities.im; Callister, Rob Rob.Callister@gov.im; Cannan, Alfred  Alfred.Cannan@gov.im  Subject: RE: Manx Gas letter dated 23 December 2021  Caution: This email is from an external sender. Please take care before opening any attachments or  following any links.   @Ali Bones please can you arrange a meeting with Simon and Phil when we are in the Isle of Man week  commencing 17th January.  Many thanks  Jo  From: Clague, Simon (MU) Simon.Clague@manxutilities.im   Sent: 31 December 2021 17:14  To: Jo Cox Jo.Cox@i‐e‐g.com  Cc: King, Philip Philip.King@manxutilities.im; Callister, Rob Rob.Callister@gov.im; Cannan, Alfred  Alfred.Cannan@gov.im  Subject: Manx Gas letter dated 23 December 2021  ** PHISHING WARNING, THIS E‐MAIL IS FROM AN EXTERNAL SENDER. CHECK AUTHENTICITY! ** Good afternoon – Please find attached a letter from Phil King in response to your letter to him dated 23 December 2021. We are keen to meet to discuss these matters further – please let me know when you are available.
2 Kind regards Simon Simon Clague  Finance Director  SUSTAINABLY DELIVERING  LIFE’S ESSENTIAL SERVICES  FOR OUR ISLAND  Respect  |  Integrity  |  Teamwork  |  Excellence  t:        +44 (0)1624   e:       simon.clague@manxutilities.im  w:      www.manxutilities.im  687687 1 From: Jo Cox Jo.Cox@i-e-g.com Sent: 31 December 2021 15:52 To: Clague, Simon (MU); Gareth Fooks Cc: King, Philip Subject: RE: Cancelled DDs? Attachments: Price increase letter MUA final 231221.pdf Caution: This email is from an external sender. Please take care before opening any attachments or  following any links.   Simon  Please find attached letter that was sent to Phil before Christmas.  Jo  From: Clague, Simon (MU) Simon.Clague@manxutilities.im   Sent: 30 December 2021 10:55  To: Gareth Fooks gareth.fooks@islandsenergygroup.com  Cc: Jo Cox Jo.Cox@i‐e‐g.com; King, Philip Philip.King@manxutilities.im  Subject: FW: Cancelled DDs?  Importance: High  ** PHISHING WARNING, THIS E‐MAIL IS FROM AN EXTERNAL SENDER. CHECK AUTHENTICITY! ** Good morning Gareth – I’m conscious that I’ve had no reply, acknowledgement or out of office notification in respect of my email yesterday, or this matter generally. The lack of any notification from Manx Gas of its cancellation of the Direct Debit has put our Board in a very difficult situation and has damaged the relationship between Manx Utilities and Manx Gas. Please get into contact with me as soon as possible – in the meantime I consider the actions taken by Manx Gas to be in breach of our contractual relationship and I am seeking further advice as to how we protect our customers from any further financial losses from Manx Gas.
Regards Simon From: Clague, Simon (MU)   Sent: 29 December 2021 11:35  To: Gareth Fooks gareth.fooks@islandsenergygroup.com  Cc: Brewster, Robyn Robyn.Brewster@manxutilities.im  Subject: Cancelled DDs?  Importance: High  Good morning Gareth – 2 I hope you and your family have had a good Christmas. We’ve received notifications from BACS suggesting that you’ve cancelled your Direct Debit with us – you’ll be aware we’re due to collect £2.2m from Manx Gas today in accordance with our contractual trading terms. Please could you confirm you have sufficient funds and that this payment will clear today, or let me know if you need to tell us anything about the payment and the Direct Debit status? I am aware of our previous conversations and statements made by Manx Gas that it is has sufficient funds to continue trading and I am therefore very concerned about the BACS notification.
Regards Simon Simon Clague  Finance Director  SUSTAINABLY DELIVERING  LIFE’S ESSENTIAL SERVICES  FOR OUR ISLAND  Respect  |  Integrity  |  Teamwork  |  Excellence  t:        +44 (0)1624  e:       simon.clague@manxutilities.im  w:      www.manxutilities.im  687687 From: Jo Cox Jo.Cox@i‐e‐g.com   Sent: 23 December 2021 19:47  To: King, Philip Philip.King@manxutilities.im  Cc: Cannan, Alfred Alfred.Cannan@gov.im; Gareth Fooks Gareth.Fooks@i‐e‐g.com  Subject: CURA price increase rejection  Caution: This email is from an external sender. Please take care before opening any attachments or  following any links.  Dear Phil  Following the announcement from CURA yesterday, please find attached a letter from us regarding the cost of gas  and a recommended solution to the worldwide problem that we face as a company.  In fact, today you will have seen in the press that the UK face a further 50% increase in the Spring due to this  crisis.  We are in a very difficult situation as a result of the incredibly volatile market and see no other alternative  than the suggested approach in the attached letter.  For completeness I am copying in Chief Minister Alf Cannan, who I believe we must engage with going forward.  Wishing you both a Merry Christmas  Jo  Jo Cox  Group CEO  Islands Energy Group Limited  The Energy Centre, Admiral Park, St Peter Port, Guernsey, GY1 3BZ  M: +44  E:   Jo.Cox@i‐e‐g.com  From: Gareth Fooks Gareth.Fooks@i‐e‐g.com   Sent: 12 October 2021 15:28  To: Clague, Simon (MU) Simon.Clague@manxutilities.im  Cc: Jo Cox Jo.Cox@i‐e‐g.com; King, Philip Philip.King@manxutilities.im; Dobbins, Adrian  Adrian.Dobbins@manxutilities.im  Subject: RE: Hedged gas price  Caution: This email is from an external sender. Please take care before opening any attachments or  following any links.  Dear Simon,  Thank you for the call on Friday.  We have met with the board members, and we can now share some of the information requested.  We will be able to share with you the first two requests:   Copies of Manx Gas’s audited financial statements for the last two years;  Manx Gas’s most recent management accounts; This information will be sufficient to enable the assessment      We will prepare the above information  for you.  Kind Regards  Gareth Fooks  CFO  m:  1 From: Jo Cox Jo.Cox@i-e-g.com Sent: 08 October 2021 09:42 To: Clague, Simon (MU); Gareth Fooks; Ali Bones Cc: King, Philip; Dobbins, Adrian Subject: RE: Hedged gas price Caution: This email is from an external sender. Please take care before opening any attachments or  following any links.   Morning everyone  Can I suggest we have a call to discuss this today, rather than going back and forth on email?  I don’t think Gareth’s email was intended to inflame our discussions, far from it.  Let’s circumvent a difficult situation with a call instead if that is ok?  @Ali Bones can you find a 30 min slot?  Many thanks  Jo  From: Clague, Simon (MU) Simon.Clague@manxutilities.im   Sent: 07 October 2021 19:28  To: Gareth Fooks Gareth.Fooks@i‐e‐g.com  Cc: Jo Cox Jo.Cox@i‐e‐g.com; King, Philip Philip.King@manxutilities.im; Dobbins, Adrian  Adrian.Dobbins@manxutilities.im  Subject: RE: Hedged gas price  ** PHISHING WARNING, THIS E‐MAIL IS FROM AN EXTERNAL SENDER. CHECK AUTHENTICITY! ** Dear Gareth –
Thank you for your response, which we have now had an opportunity to consider. I am pleased that you see the need to continue to work closely together in respect of the island’s gas supply but we are very disappointed that your response appears to suggest a lack of meaningful intent in this regard.
You will be aware that it is standard commercial practice for suppliers who have concerns about the credit- worthiness of customers to request reassurances from such customers. This is usually in the form of requests for evidence of a customer’s ability to make payments as bills fall due but can also include other reassuring actions such as more frequent payments, payments in advance and guarantees. Private energy companies, especially smaller energy companies, have been failing in the UK and the extreme level of market prices gives us cause for concern that Manx Gas will not be able to meet all of its payments to us over the winter season. We considered that requesting information that would help us understand Manx Gas’s credit position was the most appropriate step to take and the step least likely to increase any financial pressures that Manx Gas is currently under. 2 Your response appears to be a blanket refusal with no suggestion of further engagement on this matter. It is difficult to see how such an approach can be considered to be constructive or support a positive working relationship. You refer to Manx Utilities and Manx Gas being in direct competition in many areas and this appears to be the main basis for the refusal to provide any information to us. You will be fully aware that, under statute, Manx Utilities cannot provide gas to end-user customers (only to Public Gas Suppliers) and equally Manx Gas cannot provide electricity, water or sewerage utility services to end-user customers. Manx Gas does not operate in the telecommunications market. Therefore there are no directly competing services being offered by both Manx Gas and Manx Utilities. It may be considered that both Manx Utilities and Manx Gas compete for

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