Regulator approves CUC hike
(CNS): The Utility Regulation and Competition Office (OfReg) has approved CUC’s application for a base rate increase, beginning with power used last month, in accordance with the monopoly power provider’s licence. CUC said its customers would “see a marginal increase in the energy charge component of their bills” for the electricity they had already used in June that will be billed early this month.
The rate has been increased by just under 1% and CUC maintained it would result in a total monthly bill increase of about $1.06 for the average residential customer. This latest price hike does not impact the fuel charge or the other fees CUC passes on to the consumer, such as its licence and regulatory fees.
The increase is based on a formula that includes local and US inflation rates. OfReg also considers the level of profit CUC made for the most recent calendar year and in 2018 cleared 7.1%.
Richard Hew, CUC’s president and CEO, said the company’s focus on efficiency meant that the rate change was below the general inflation level “while maintaining the ability to make significant investments in modern infrastructure and skilled people required to deliver a safe and reliable service”.
What a load of shyte, I used 15 more units this month compared to last month and my bill went up CI$65.00 That is almost a 20% increase.
I thought OffReg was formed to help control the prices that these companies were charging the consumer, but it looks like they’re on the side of the providers.
This Unity Government has to go. They are doing nothing to lower the cost of living. There should be a clause that when you are running as a candidate for the Legislative Assembly, you can not have shares in any company such as CUC.
Should be a law if you found guilty of selling illegal drugs and spent time in jail, you should be unable to run for M L A for life.
So Digicel was allowed to come in to provide Cable and Wireless competition. Why can’t we have a competing electricity company? Can someone explain what has been the decades hold-up of much needed competition and choice? Other than the fact that certain politicians have a personal stake in CUC…
Your last line says it all 11:29. That is your answer to your question.
The answer is because no competition is willing to pay the cost of setting up and maintaining distribution.
We have never asked another utility company so how would we know?
No room for second set of light/power poles
11:29 am, why don’t you invest in C U C shares, you can pay a little extra on your bill each month to buy shares, its a good investment, so do it, or keep it shut.
Great idea. I can then also push for higher energy costs every year ripping off the majority of people on these Islands who find it painful paying off their monthly energy bills. That’s what the people in power do and that is why there is ZERO / ZERO energy regulation here. You are obviously one of those people.
Probably also making efforts to make solar power as economically difficult as hell.
Sad when people who have so much on this island never have enough.
Because power distribution is cheapest when undertaken at scale in a regulated single entity market. Otherwise you duplicate infrastructure which would raise costs.
But with a proper policy in place where solar power compliments traditional power distribution, energy costs can be lowered. Of course, CUC is doing everything to stonewall solar as it will cut into their nice annual profits.
Solar power does not duplicate infrastructure and does not raise costs. Though if done correctly, can lower costs for the majority of energy rate payers on Grand Cayman.
CUC needs to start seriously looking outside of the box and get serious about renewables.
The cost to set up another electricity company would be too prohibitive. E.g. That company would have to install their own power poles and power lines, whoch would need planning approval and tons of government fees which would run into the hundreds of millions. CUC is what you would call a natural monopoly. The best alternative would be to get solar on your houses and either stay off the grid or connect to the grid and CUC pay you for generating electricity for them, thereby driving down cost.
Interesting! So the inclusion of solar power has resulted in absolutely no benefit to us at all…
The most amazing head would be “CUC reduces prices” but we will never see that..
There are not enough people using solar energy. The number of solar energy owners is too small to make any significant impact on the price. As more people go solar, it will make. A difference…
Nonsense. CUC’s efforts to promote solar power have been very limited.
They are too busy raking in big profits and the last thing they want to see is too much solar power on island. So they disincentivise solar.
In Curaçao 7% of all energy power is from solar and 26% of energy generated is from combined solar and wind power. Renewables are growing every year there.
What has Curaçao figured out that we have yet to learn?
Stop complaining, you could be a Little Cayman or Brac resident and be paying much more.
CUC is entitled to a yearly increase in their profits but we the employed are not entitled to a yearly pay increase! How are we suppose to keep up with the cost of living? Also why can’t the government renegotiate their contract? They are a monopoly, they always make a profit through sale of electricity so why the yearly hike. They sell electricity so why exactly do we have to pay them extra for the upkeep of their engines? I don’t get paid extra for my car upkeep to get to work.
Have OfReg finished training their staff yet, so they know how to do the jobs they are being paid for. Yet another rate increase and they have the nerve to BACKDATE it. In the UK most rate increases are subject to a notice period, often 3 months.
Well this is not good. Also food inflation is through the roof. Will the government do something about the cost of living?
must be nice to own a business where profits are guaranteed by the government.
Like Customs /immigration and all other Govt. Dept’s.
High light bills and robust taxes, do something for the people for once and approve a price cut especially in these summer months. Fed up !!!
When they approve the increase rate they not only approve it for CUC but for all the businesses on Islands, so what that means is the cost of living gone up again, what is Government do to control the high cost of living in Cayman??
I’m not sure where this efficiency is being gained. My neighbour leaves home bright and early every morning in his vehicle and a few hours later there is a CUC truck in his driveway. No matter what time I come home during the day it seems to always be there. If he’s “working from home” why does he need a CUC vehicle? If it’s something else maybe this explains why the rates keep going up.
In the Brac i see people going to shops, bars, churches and bay fishing in their employers vehicles.
4:31 pm, govt. Vehicles
Rates have been rising with or without ofreg, so remind me again what it is they do (aside from galavanting the world on public funds).
This is beyond unbelievable. Every time it rains some part of Cayman loses electricity. So we reward this poor service provider with higher rates. Only in la la land.
What exactly is OfReg’s purpose? This is no surprise, every summer CUC does this crap and we the consumers have no recourse. This is really disgusting!!!
To “fix tings”, if you catch my drift. They should be named Govt. Office of R@ck3t33💍
Ofreg should be shut down an the money wasted on them should be used to do something about the stinking dump
When light comes from darkness, we have a fundamental problem.
Diesel is a power source extracted from the dark recesses of the world. We burn it, pollute our planet and charge money with the blessing of the government.
Things are changing. Dark practices are being exposed. Look at today’s youth who are advocating change. We would do well to heed the purity of their hearts. As it is written, “A child shall lead them.”
A lot of people are going to be embarrassed and exposed for the greedy charlatans that they are.
Hint, the main offenders are poluticians. You know who you are. Violent, evil people willing to live in a corrupt nest as long as you are not sleeping in the wet spot.
Brood of vipers, blind guides. How can you escape damnation?
Simple, OfReg is their salvation!
Every summer!!! Why do we still have a monopoly???? Come on Government!!!! Poor people fed up!!!!
Almost weekly power outages over the last 2 months
But sure let them keep taking people’s hard earned money for the same sub par service
F***** monopolies
cant win here. looking elsewhere for retirement…and yes i an a native
So many locals and expats are simply being priced out of this place. No longer a reasonably priced place to retire with astronomical health insurance costs and A/C costs. The Cayman Islands will soon only be a place for billionaires.
plus don’t forget the pension scam…where despite having 100’s of thousands in your fund…you will only $1200 per month and be expecting to survive on that.
There is a reason why Caymanian pension contributors are forced to give to a pension fund that invests in non-domiciled opportunities.
This whole thing is a massive ponzi scheme and the margin should be called immediately.
The fund is practically empty. It has been a lie.
Wish i was getting $ 1200 pm pension
Well that is what your famous speaker told you in his speech . He wants to make Cayman another Dubai, a place for the world’s richest. So, not sure what will happen to all his brainwashed peons.
Unless billionaires prefer to breath clean air. Dream big, but don’t assume your iconic tower next to the Dump is what they need.
its part of their agreement..so it is what it is.
the real question is:…why has the ppm done nothing in 8 years to tackel the general cost of living issue that cripples the lives of many local businesses and many ordinary people…?