CUC profits fuelled by hotter weather
(CNS): Sales and profits were up for Grand Cayman’s monopoly power provider at the end of June compared to the same time last year, as a result of an increase in air-conditioning use, the company said. The second quarter of this year had an average temperature a full degree higher than in 2018, boosting CUC’s net earnings by $900,000. Meanwhile, the number of CUC customers exceeded 30,000, which was a 2% increase on the end of June last year.
CUC President and CEO Richard Hew said electricity sales have been robust because of the growing customer numbers, a strong economy and above normal temperatures, particularly in May and June.
“The Company continues to invest in the infrastructure necessary to meet the growing customer demand and to serve reliably. Refurbishments to the Rum Point and Bodden Town substations have been completed and the new Seven Mile Beach substation construction is progressing well towards completion later this year,” he said. “Construction of the new Prospect substation has also commenced. The Company continues to focus its attention on improving the level of service it offers to its customer by investing in infrastructure, technology and its people.”
In a press release announcing the second quarter figures, the company stated that this combination had seen CUC reach a new peak demand level of 113.3 megawatts, surpassing the previous peak demand of 105.6 MW in 2017. CUC now has a generating capacity however of 161MW as well as another 9.4MW from the renewable capacity connected to the grid, enabling it to meet the new peak.
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You talking about buying shares, how can we – when the majority of the consumers are struggling to pay their high CUC bill each month.
Why does CUC have to charge an energy charge and a fuel cost? I thought the fuel cost would cover the energy cost.
The energy charge pays for things like the poles, wires, transformers substations, etc. and the operation of the same. The fuel cost literally pays for the fuel required to produce the electricity. They’re split for transparency as to the source of costs.
Brilliant idea by CIG to drop duty on electric cars to pad CUC’s profits
Now now, its not like Richard Hew is the CEO and Joey Hew is the MLA that passed this.
It is easy for those people who earn $6,000.- to $10,000. a month to say, go solar or buy shares. Solar is very expensive and most people can’t afford it.
Those people who earn $3,000.00 and below, can barely afford to pay the high CUC bills, and when they pay the CUC bill, they have to choose between food or not paying some other bill.
That’s a fair comment regarding shares and solar but the reality is our rates are relatively cheap compared to the rest of the world. If the bill is too high, use less, that’s what the rest of the world does.
CUC’s rates are nothing short of extortion. Mafia style extortion.
That’s just not true though. Including fuel surcharges and fuel duty etc we pay half per kwh what similar islands like USVI pay. Half! We pay 2/3 what Jamaica pays and less than Hawaii. We even pay less than Germany and Italy!
They must make a high profit is they got approval to raise the cost of electricity for the summer. The Bill’s we getting is so outrageous . These bills and our pay it just not working out .
i live on canal…have 13 ft well insulated ceilings and 2 fand.. open windows and keep machete’s for thieves…cuc and politicians na fet rich off me..lol
I think it’s time to go to the Legislative Assembly building and start protesting against this Unity Government, about the HIGH cost of living. I don’t mean a friendly protest either – we need to let them know that we are disgusted and fed up with them.
As for CUC, they should not brag about any profit they make, while killing their customers with such high bills.
Maybe they can change how much klwts a customer uses from a computer, just like they can disconnect a customer when their bill isn’t paid. Just saying.
To be honest CUC is not going anywhere. You either go solar, or buy CUC shares. Last time I checked, they paid a dividend of around 5%. If you invest what you pay annually to CUC, you will be paying 5% less than non shareholders. Not to forget share price appreciation also adds value.
CUC does not sell shares anymore. You have to buy from people who want to sell now.
They are publicly traded on TSX; CUP.U
Lol
https://www.cuc-cayman.com/customer-service/customer-share-purchase-plan/
Can’t lose can they? The only reason these islands didn’t take on a full alternative energy program years ago is lobbying from CUC. They’re pumping crap into the atmosphere 24/7 and then cashing in on it.
Actually the government makes much more (through duties on diesel) per KWH produced than CUC, and government does nothing and takes no risk to earn that money. If anyone is overcharging for crap service it seems to be the Cayman Islands Government.
C U C pays govt. Plenty millions of dollars p a, in duties for everything that they import they make more money for doing nothing, than C U C does. They are the one that people should be complaining about.
Nothing stopping you going solar yourself. CUC will even pay you more for it than ot costs to buy off them.
What do you mean by “alternative energy program”? Youve been able to put up your own solar for many years and if CUC’s power came from alternative sources, you’d still have to pay (more) for it. What’s your point?
Assuming 60,000 people in Cayman rely on fossil fuel energy compared to 3 billion others worldwide (very generous estimates for you):
Cayman generates about 0.00002% of emissions on our planet. There is only so much that can be efficiently and feasibly done for our size.
God forbid a company make a profit. Don’t like it, buy the shares.
Or you end up getting a service like FLOW or Digicel!
Nobody’s against profit, but it is windfall profits that I object to.
7-8% is hardly windfall
7 to 8% plus a few years with 10% plus, is well above the normal return for North American public utility companies.
They know that it is a given for them to make a orofit every year, they also know that each year is hotter than the last one so they might as well stop talking rubbish. They have no conscience, they are greedy and they are just leaching their way along. The government is mostly to blame- past time they renegotiate these contracts that allow these utilities companies to capital on us no matter what! At the rate they are going a huge sector of the population will not be able to continue paying these high bills. We will have to turn off the meters and become one of the ” below the poverty line” people. Everyone including the ‘well off” among us will have to deal with the fall out from that together. Everybody will be ” the loser”
If OFFREG allows another increase to CUC for the next 2 years I at least, I would say that these board members are shareholders of CUC or is benefitting somehow from CUC.
1:01 pm. Why don’t you buy C U C shares, in Grand you can buy shares by adding a few dollars on to your monthly bill and by the time you ready to retire you will have shares that pays good dividends to help with your retirement. Think man, think.
5:32pm, 6 fools gave the thumbs down so far. Wonder how many fools will follow.. Those fools are the one wanting everything for nothing. To the sensible ones, go ahead and buy C U C shares, i am sure you be glad you did. I know my family, friends and myself are glad we bought C U C and we still buying.
It’s a publicly traded company. Anyone can own shares.
OfReg must be overjoyed with this news having authorized that recent increase in rates.
OffReg is a wholly owned company of central government. I realise that they have a board of directors but I am not sure if the bucks stops with them. I have heard for many years that their contract allows them to increase their fees. Is that so? Also are we the public responsible for repaying them for expenses incurred for upgrades to their machinery. It is bad enoug to have to pay for the fuel they use to produce electricity that they sell us but it also sounds like we have to pay them for their machinery. Would someone who knows this ( other than the CEO) please comment. I’d hate to accuse them falsely.
You have to pay for their fuel and machinery as well as their employee salaries and other costs, plus a regulated profit. That’s how you get them to build a plant and put up poles all over the island to make and sell you electricity. If you don’t want their electricity, make your own. Warning, it will cost you more and you will get to learn all about maintenance of batteries, solar panels, inverters, voltage regulators etc.
2:53 pm. Now you are one with common sense, which is not too common these days. Thanks your commit which is 100% correct. And to the others, buy C U C shares. Its a good investment, you will be glad you did.
Sometimes you have to pay for expertise on Govt. boards.
You thumb down person do you have any comment? Why exactly are you thumbing down! If you don’t agree with my post please tell us why.