Breakdown of electricity price to customer

Summary

The requester asked for a breakdown of electricity costs, specifically the percentage attributed to loan interest and monthly repayment figures. The authority disclosed that specific percentage calculations are not held but directed the requester to public financial reports for interest data, citing that some information is already reasonably accessible.

Key Facts

• Manx Utilities does not hold a specific calculation or percentage correlating loan interest directly to customer electricity charges.
• The standing charge is not cost-reflective but contributes to overall supply costs.
• Interest on loans is charged annually rather than monthly.
• Details on interest payable for 2022-23 are available in Note 9 of the 2023-24 Financial Statement.
• Further loan terms can be found on page 91, Note 18 of the 2023-24 Annual Report.

Data Disclosed

• FOI 3963653
• FOI 3963453
• May 2023
• 2023-24 Financial Statement
• 2018 Pricing Review
• 2022-23
• Note 5
• Note 9
• Note 18
• Page 91
• 2024-08-09
• 2024-09-06

Exemptions Cited

• Section 20 of the Act (Information reasonably accessible)

Original Request

Hello, In FOI 3963653, you stated that loan interest payments are part of the customer charges for electricity. 1. Please provide how an electricity cost is calculated for customers or point to a link showing this breakdown of wholesale price to charge to customer. 2. Please provide the percentage of the electricity charge to the customer that is the interest payment to the loans. If this is calculated into the standing charge, rather than electricity cost then please specify and provide that percentage breakdown. 3. Please provide the monthly interest amount that MUA has to repay to IOM gov bonds and Treasury Consolidated Loan separately. If not monthly, then state term repayments and provide figure. If this percentage cannot be ascertained in number 2, then please provide a figure or some method of seeing how much interest vs actual electricity generation and supply cost we are paying. Thanks

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: 4051781 6 September 2024

Dear ###

We write further to your request, received 9 August 2024, which states:

"Hello,

In FOI 3963653, you stated that loan interest payments are part of the customer charges for electricity.

1. Please provide how an electricity cost is calculated for customers or point to a link showing this breakdown of wholesale price to charge to customer.

2. Please provide the percentage of the electricity charge to the customer that is the interest payment to the loans. If this is calculated into the standing charge, rather than electricity cost then please specify and provide that percentage breakdown.

3. Please provide the monthly interest amount that MUA has to repay to IOM gov bonds and Treasury Consolidated Loan separately. If not monthly, then state term repayments and provide figure.

If this percentage cannot be ascertained in number 2, then please provide a figure or some method of seeing how much interest vs actual electricity generation and supply cost we are paying.

Thanks"

Our response to your request is as follows:

1) Please provide how an electricity cost is calculated for customers or point to a link showing this breakdown of wholesale price to charge the customer. 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 however to advise and assist details of the costs relating to electricity income is publicly available from Manx Utilities website within the following reports and reviews: NERA Economic Consulting (May 2023), note 5 of the Manx Utilities 2023-24 Financial Statement, and Manx Utilities 2018 Pricing Review.

2) Please provide the percentage of the electricity charge to the customer that is in the interest payment to the loans. If this is calculated into the standing charge, rather than electricity cost then please specify and provide that percentage breakdown. While our aim is to provide information whenever possible, in this instance Manx Utilities does not hold this detail, as there is no calculation or percentage directly correlating to the Loan interest. We can however, reiterate information which was provided under FOI request 3963453, “The standing charge is not a cost reflective charge. It contributes towards the overall costs of supplying electricity to local customers”.

3) Please provide the monthly interest amount that the MUA has to repay to IOM gov bonds and Treasury Consolidated Load separately.
If not monthly, then, state term repayments and provide figure.

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 within note 9 of Manx Utilities 2023-24 Financial Statement, however to advise and assist, interest is charged annually. The interest payable for 2022-23 was broken down between the two bonds and the consolidated loan fund as detailed in the table below.

Further details about the terms of the loans can also be found on page 91, note 18 of the Manx Utilities 2023-24 Annual Report.

Please quote the reference number 4051781 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.