Hedging

AuthorityManx Utilities Authority
Date received2022-02-25
OutcomeAll information sent
Outcome date2022-03-16
Case ID2295341

Summary

The request sought the percentage of gas hedged by Manx Utilities for electricity generation and Manx Gas supply over the previous three years and the current year. The authority disclosed specific hedging percentages for both categories, noting that gas for UK electricity exports is not hedged.

Key Facts

  • Manx Utilities hedges gas for island electricity demand, UK export generation, and Manx Gas supply.
  • Gas purchased for electricity exports to the UK is not hedged as trades are committed in real-time.
  • Hedging percentages for island electricity demand ranged from 97.5% to 111.6% between 2018 and 2022.
  • Hedging percentages for Manx Gas supply ranged from 25.8% to 66.3% between 2018 and 2022.
  • The response was issued on 16 March 2022 following a request received on 25 February 2022.

Data Disclosed

  • 2018-19: 100.4% (island demand)
  • 2019-20: 97.5% (island demand)
  • 2020-21: 98.4% (island demand)
  • 2021-22: 111.6% (island demand, estimated)
  • 2018-19: 62.8% (Manx Gas)
  • 2019-20: 66.3% (Manx Gas)
  • 2020-21: 66.2% (Manx Gas)
  • 2021-22: 25.8% (Manx Gas, estimated)
  • 2022-02-25
  • 2022-03-16
  • 2295341

Original Request

As a percentage of the total amount bought, how much gas has Manx Utilities hedged in the previous three years and how much has is forecasting to have hedged for this year?

Data Tables (2)

2018-19 100.4%
2019-20 97.5%
2020-21 98.4%
2021-22 *(estimated) 111.6%*
2018-19 62.8%
2019-20 66.3%
2020-21 66.2%
2021-22 *(estimated) 25.8%*

Full Response Text

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

e: enquiries@manxutilities.im t: 01624 687687 www.manxutilities.im

Our ref: 2295341 16 March 2022

Dear ###

We write further to your request which was received on 25 February 2022 and which states:

"As a percentage of the total amount bought, how much gas has Manx Utilities hedged in the previous three years and how much has is forecasting to have hedged for this year?"

Our response to your request is as follows as Manx Utilities purchase natural gas for three separate main purposes: (i) To generate electricity to meet island demand; In respect of gas generation to meet island demand, Manx Utilities forward purchased (hedged) amounts as shown in the following table (percentages are calculated based on the total amount of natural gas bought in therms hedged, divided by total therms required, with surplus gas going back to the market): 2018-19 100.4% 2019-20 97.5% 2020-21 98.4% 2021-22 (estimated) 111.6% (ii) To generate electricity to export to UK;
Manx Utilities does not hedge gas in respect of generation for electricity exports to UK, these trades are committed in real-time. (iii) On behalf of Manx Gas, upon their direct instruction and passed through to them at cost In respect of volumes purchased for Manx Gas, Manx Utilities forward purchased amounts as shown in the following table (this is as a percentage of the total amount purchased for Manx Gas): 2018-19 62.8% 2019-20 66.3% 2020-21 66.2% 2021-22 (estimated) 25.8%

Please quote the reference number 2295341 in any future communications.

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