Manx Gas was considered a credit risk by Manx Utilities, as it failed to supply further information, when requested.
Yesterday Manx Gas’ parent company boss Jo Cox said Manx Utilities had said the company was a credit risk when it sought to hedge its gas buying.
A spokesperson for Manx Utilities has said that the company failed to prove the info it asked for which ‘would enable Manx Utilities to understand the financial risk it was being exposed to following a significant increase in wholesale energy costs’.
They added: ‘As Manx Gas did not supply sufficient information, Manx Utilities was unable to forward-purchase gas on the company’s behalf. The decision was made by Manx Utilities’ senior officers and has been considered regularly since by Manx Utilities’ Board, most recently on March 25 2022.’
We will update this story throughout the afternoon.