Although the energy supplier owes millions
Manx Utilities says its relationship with Manx Gas is “good” despite the energy supplier canceling more than £2m of “incoming payments” just before Christmas.
Information released as part of a freedom of information response shows that Manx Gas failed to pay its bills on time or in full.
Manx Gas’ debt peaked at £9m earlier this month and currently stands at £2.4m – a further £3.2m has been billed but has yet to be paid.
In a statement, Manx Utilities said:
“Manx Utilities was aware of both the potential public interest in non-payment of large sums of money to a public body and the potentially commercial sensitivities arising from disclosing such information.
“Prior to Christmas 2021, Manx Utilities was concerned about the possible impact of high wholesale energy prices on Manx Gas’ ability to pay for the natural gas it purchased from Manx Utilities.
“As previously reported, a request from Manx Gas to forward purchase natural gas for winter 2021 has been satisfied, but another request has been deferred pending receipt of additional information from Manx Gas which Manx Gas has declined. provide.
“On Christmas Eve, Manx Utilities was advised by its banking provider that incoming payments due from Manx Gas totaling £2.3m had been canceled by Manx Gas.
“Manx Gas subsequently confirmed this to be the case.”
Manx Utilities also confirmed that it denied a request to extend payment terms from 30 days from invoicing to 90 days.
Despite this, Manx Gas paid a bill 104 days after it was issued.
Rob Callister is the chairman of Manx Utilities:
Manx Radio has contacted Manx Gas for a response.