Manx Gas owe 'millions' to Manx Utilities
Tue, 26 Apr 2022
The chairman of Manx Utilities says Manx Gas owes them millions of pounds after failing to pay bills on time.
Rob Callister confirmed the overdue debt from Manx Gas had at one point peaked at nine million pounds. He said it currently stands at two point four with a further three point two million pounds invoice.
It follows a Freedom of Information request seeking confirmation that Manx Gas had paid all of its between September 2021 and February this year.
Mr Callister said: "Manx Utilities has been aware of both the potential public interest in the non-payment of significant sums of money to a public body and the potentially commercial sensitivities arising from the disclosure of such information.
Manx Utilities requested several extensions from the requestor in order to consult with all parties, receive advice, collate feedback, consider the application of exemptions and appropriate redactions and prepare the response.
Prior to Christmas 2021 Manx Utilities was concerned with the possible impact of high wholesale energy prices on Manx Gas’s ability to pay for the natural gas it was purchasing from Manx Utilities. As previously reported, a request from Manx Gas to forward purchase natural gas for winter 2021 was fulfilled but a further request was deferred pending the receipt of further information from Manx Gas, which Manx Gas declined to provide.
On Christmas Eve Manx Utilities was notified by its banking provider that inward payments due from Manx Gas totalling £2.3 million had been cancelled by Manx Gas.
Manx Gas subsequently confirmed this was the case.
In January 2022 Manx Gas requested that its payment terms be extended from 30 days’ from invoice date to 90 days’ from invoice date.
This request was refused by Manx Utilities but payments from Manx Gas continued to be outside the 30 days terms agreed and up to 104 days after an invoice was issued. During 2022 Manx Gas has made two payments to Manx Utilities – the £2.3 million paid at the end of February 2022 and £6.5 million paid on 19 April 2022.
The overdue debt from Manx Gas to Manx Utilities peaked at £9.0 million in April 2022 and currently stands at £2.4 million, with a further
£3.2 million invoiced but not yet due for payment. Manx Utilities continues dialogue with Manx Gas to ensure natural gas is provided to Manx Gas’s customers and to ensure it is paid in full and on time for gas and gas services supplied to Manx Gas."
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