7th November 2011
Manx Electricity Authority publishes Annual Report & Accounts
In what was a challenging year, the Authority maintained the high quality and reliable service across all of its activities, which has been achieved within the context of budgetary restrictions and the continuing need to manage the Authority’s debt.
The Manx Electricity Authority required no revenue grant from Government during the last financial year, the first time since 2005 and the MEA reduced its annual deficit from £10.9m to £10m during 2010/11.
Chief Executive Phil King explained: ‘Our major goals during 2010/11 were to stabilise debt, reduce overhead costs and develop new business streams in order to minimise tariff increases.
‘We’ve made an encouraging start towards our long-term goal of securing financial stability, despite the uncertainties created by a worldwide recession. The Authority has developed a firm foundation from which we can build for the future and bring further improvements.’
Other main points from the 2010/11 accounts include:
• A reduction in on-Island electricity sales, mainly brought about by an increase in energy efficiency programmes
• Fuel costs for Island demand rose, largely driven by global politics, economic conditions, and their impact on energy markets
• Export activities provided a £4.4m contribution after energy costs – with 22% of production sold to the UK
A major focus was the Natural Gas Extension Project, which the MEA is managing on behalf of Government. The project is on-time and on-budget, with £7m spent during the year from a total budget of £23.5m.
The Authority’s Generation Team focused much of their attention on the Combined Cycle Gas Turbine Plant (CCGT) at Pulrose, which included a major overhaul of one of the gas turbines. This involved the removal, overhaul and replacement of its 27-tonne rotor, which will see the generator through another 50,000 hours of operational service.
Quintin Gill, who was the Authority’s Chairman for the year, said: ‘The principal responsibility for the MEA is the provision of a reliable supply of electricity in support of the economy and this was successfully delivered in 2010/11. The primary measurement of supply reliability is customer minutes lost (CML) and the MEA has one of the best CML records in Europe, which is a credit to all of the staff involved throughout the supply chain.
‘The Authority remains committed to working towards a low-carbon economy and utilising renewable sources of generation where it is economically viable; As part of this commitment, we have recently introduced a voluntary “Green Commercial Tariff”, which allows for businesses to pay a premium for energy produced by renewable generation.
Mr Gill added: ‘It has been a privilege to have served in the role of Chairman. I recognise and value the extremely high level of professionalism and dedication I have consistently witnessed across all the sectors of the Authority’s work. The MEA plays a vital role in supporting commerce and community across the Island and I am confident that the Board and Officers will continue to work hard to meet such demands in these interesting times of change and challenge.’
Mr Lowey MLC, Chairman Designate, on behalf of the Board, in return, passed on his appreciation for the sterling work and diligence that Quintin contributed to the MEA during his time as Chairman.
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