Electricity Costs - Loan interest payments and Maintenance

Summary

The request sought details on loan interest contributions to electricity charges and the specific costs of maintaining distribution infrastructure. The authority disclosed the total loan interest amount and provided a breakdown of maintenance, staff, and other costs, noting that detailed financial statements are publicly available.

Key Facts

• Loan interest payments of £11.37 million were included in customer electricity charges for 2022-23.
• The cost of maintaining pipes, cables, and pylons for the distribution network was £1.76 million.
• Staff costs for distribution and transmission totaled £4.91 million.
• Other related costs such as wayleaves and materials amounted to £2.40 million.
• The authority cited Section 20 of the Act regarding the public availability of the 2022-23 Annual Reports.

Data Disclosed

• £11.37 million
• 2022-23
• £1.76 million
• £4.91 million
• £2.40 million
• 2024-07-08
• 2024-08-02
• 3963653
• page 75

Exemptions Cited

• Section 20 of the Act (Information reasonably accessible)

Original Request

1. How much of loan interest payments make up a customers charge for electricity. 2. What is the actual cost of maintaining pipes/cables and pylons etc to facilitate the distribution of electricity from source to home.

Data Tables (1)

Data Tables (reformatted)

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: 3963653 2 August 2024

Dear ###

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

"1. How much of loan interest payments make up a customers charge for electricity.
2. What is the actual cost of maintaining pipes/cables and pylons etc to facilitate the distribution of electricity from source to home."

Our response to your request is as follows:

1. How much of loan interest payments make up a customers charge for electricity.

Loan interest payments of £11.37 million (2022-23) are included within charges to customers for electricity. Loan interest charges comprise interest payable on IoM Government Bonds, and interest payable on borrowing from Treasury’s Consolidated Loans Fund.

1. What is the actual cost of maintaining pipes/cables and pylons etc to facilitate the distribution of electricity from source to home.

While our aim is to provide information whenever possible, under section 20 of the Act, we are not required to provide information in response to a request if it is already reasonably accessible to you, whether free of charge or on payment of a fee. The information you have requested is publicly available in our 2022-23 Annual Reports & Financial Statements from our website: https://www.manxutilities.im/about-us/annual- reports-financial-statements/annual-reports-financial-statements/

To provide further advice and assistance to this, page 75 shows the Electricity Turnover and Operating Cost (as below). This includes a figure for the Distribution and Transmission total cost, which can be broken-down further as:

• £1.76 million for the cost of maintaining pipes/cables, pylons and other plant to facilitate the distribution network • £4.91 million staff costs, and • £2.40 million in other related costs (ie; wayleaves, materials, consultancy, utilities, fleet, insurance etc)

There are significant variances from one year to the next depending on factors such as asset replacement programmes, storm damage and third party damage.

Please quote the reference number 3963653 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.