Interconnector and Standing Charge (Electricity)

Summary

The request sought details on electricity costs from the interconnector, green energy certification, other generation tariffs, and standing charge calculations. The authority disclosed the average interconnector cost, confirmed green energy is more expensive and certified via Renewable Energy Certificates, provided specific tariff rates for sustainable generation, and explained the standing charge is not cost-reflective.

Key Facts

• The average cost of electricity from the interconnector for 2022-23 was £176.73 per MWh.
• Green electricity from the interconnector costs more and is certified using Renewable Energy Certificates of Origin.
• The Domestic and Commercial Sustainable Generation tariffs are currently 9.5 pence per kWh excluding VAT.
• The Home Generation Tariff operates on a net metering basis using the domestic unit rate.
• The standing charge is not a cost-reflective charge but contributes to overall supply costs.

Data Disclosed

• £176.73 per MWh
• 2022-23
• 9.5 pence per kWh
• 2024-07-08
• 2024-08-01
• 3963453

Exemptions Cited

• Freedom of Information Act 2015, Exemption 20 (Information accessible to the applicant by other means)

Original Request

1. Please provide the cost of units of electricity from the interconnector. 2. I have read that we receive green electricity from the interconnector. Is this at a higher cost? And what is provided to certify it as green? 3. Please provide cost paid per unit for any other electricity generation/supply and state who is paid. 4. Please clarify specifically where the money for the standing charge is put towards and how this cost is calculated.

Data Tables (1)

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: 3963453 01 August 2024

Dear ###

We write further to your request, received 8 July 2024, which states:

"1. Please provide the cost of units of electricity from the interconnector.

1. I have read that we receive green electricity from the interconnector. Is this at a higher cost? And what is provided to certify it as green?

2. Please provide cost paid per unit for any other electricity generation/supply and state who is paid.

3. Please clarify specifically where the money for the standing charge is put towards and how this cost is calculated."

Our response to your request is as follows:

1. Please provide the cost of units of electricity from the interconnector.

The average cost for 2022-23 was £176.73 per MWh.

1. I have read that we receive green electricity from the interconnector. Is this at a higher cost? And what is provided to certify it as green?

Green electricity from the interconnector is at a higher cost. Renewable Energy Certificates of Origin are purchased to certify it is green.

1. Please provide cost paid per unit for any other electricity generation/supply and state who is paid.

Aside from electricity imported from the UK and electricity generated by Manx Utilities, electricity is purchased from customers who export electricity back to Manx Utilities:

a) Domestic Sustainable Generation tariff
b) Commercial Sustainable Generation tariff
c) Home Generation tariff

Freedom of Information Act 2015, Exemption 20 (Information accessible to the applicant by other means) applies to a) and b) tariffs and is available on our website

under Sustainable Generation Manx Utilities - Tariffs, rates and charges however, to assist we can confirm that this is currently 9.5 pence per kWh excluding VAT.

The Home Generation Tariff ‘c)’ is a legacy tariff and operates net metering so the domestic unit rate applies (with a discount if the customer is a net exporter to Manx Utilities – i.e. exports more than they consume).

1. Please clarify specifically where the money for the standing charge is put towards and how this cost is calculated.

The standing charge is not a cost reflective charge. It contributes towards the overall costs of supplying electricity to local customers.

Please quote the reference number 3963453 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.