Manx Gas overdue payments to Manx Utilities peaked at £9m

Overdue payments by Manx Gas to the Isle of Man utilities provider peaked at £9m earlier this month, it has been confirmed.

Manx Utilities (MU) has confirmed the company had not paid all of its invoices on time or in full between September and February.

All of the natural gas purchased for sale on the island by Manx Gas is done via MU.

Manx Gas said it had been "quite open about the difficulties" it had faced.

The gas provider's overdue debt has now reduced to £2.4m, with a further £3.2m "invoiced but not yet due for payment", MU said.

It added that £2.3m in payments due from Manx Gas had been cancelled on 24 December, and some later payments were made more than 70 days after they were due.

It was recently revealed that MU had refused a request to forward-purchase gas for the company for winter 2021 as the company was deemed to be a "credit risk".

A request to extend its payment times from 30 days to 90 had also been rejected by MU in January.

Earlier this month, Manx Gas CEO Jo Cox told Tynwald's Economic Policy Review Committee that a new regulatory framework approved by Tynwald in March had since given the company "stability".

Under the agreement, a 58% hike in bills for gas customers came into force on 1 April, in response to the current volatility in the wholesale market.

In a statement, Ms Cox said it was "important to understand" that the issues had arisen before the regulatory agreement was introduced.

"Having this framework in place is vital as prices can now follow the market in a timely manner, giving transparent pricing for all parties," she added.

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