CUC’s summer price hike postponed
(CNS): Grand Cayman’s monopoly power provider will not be raising the price of electricity as usual this summer, as OfReg has deferred the annual price hike until January. As part of its licence, CUC is allowed to apply for an annual base-rate increase in line with costs and inflation, but given the COVID-19 pandemic and the significant hardships imposed on the community by the lockdown measures, the utilities regulator has directed a delay.
OfReg had accepted CUC’s application for an increase, having “determined that the… rate adjustment of 6.6% was allowed under the Rate Cap Adjustment Mechanism (RCAM)” in CUC’s licence.
While it would normally have come into effect in June, it will now not appear on bills until 1 January, giving customers a temporary reprieve from the increase, which although marginal would come at a time when people are already struggling to pay the current rate.
The average residential consumer who consumes 1,000kWh each month can expect to see an increase of around CI$2.10 on their monthly bills.
“OfReg doesn’t take lightly its decision to authorise CUC to raise its base rates but we are bound by law and CUC’s T&D Licence to issue a decision now,” said the utility regulator, which has itself come in for wide criticism.
Since its inception some three years ago, OfReg has failed in the eyes of the community to live up to its mandate, especially when it comes to ensuring fair costs for water, power, fuel and communication services. Instead, the regulator itself has been seen as another costly government department sucking up public funds and failing to meet its mandate.
However, OfReg said that the impact of the rate rise will be softened by its deferral and customers will see “a marginal increase only in the energy portion of their electricity bill come February” next year.
Anyone with questions about the increase can call OfReg on 946-4282 or email info@ofreg.ky
What’s the price of oil per barrel?
More like CUC volunteered to delay the increase due to Covid. Florida Power and Light reduced their rates by 20% due to Covid hardship.
In any event 6.6% is hardly marginal, my monthly bill will increase by $14.50 (2000 KWH), assuming there are no additional increases in the Facilities Charge, the Energy Charge, the Lic and Reg Fees, the Fuel Cost and the Renewable Energy charge.
I suppose we should be grateful that CUC do not have a Postage and Stationary charge to add on.
Actually, Florida Power and Light advanced refunds due to their customers to reduce the price in the near term. That price reduction was already going to be applied to consumer bills throughout the year, it was just consolidated and applied at one time. In both cases, decisions were made in respect to license conditions and terms to move forward (or push back) implementation to benefit customers during the (presumably) deepest impact of pandemic.
CUC bill be like:
Power consumed
Renewable energy fee
Fuel duty fee
Unexplainable Fee
Because Secret contract say so Fee
Because OfReg won’t do anything Fee
Package Fee
Stamp Duty Fee
Shipping & Handling
Delivery Fee
New Fee
Just Because Fee
Fee on top of fee Fee
Hopefully this doesn’t affect the CUC balance sheet too much. I am looking foward to a dividend increase in the near term!
Now that’s some bullshit. I was looking forward to paying them more.
Why on earth they would raise rate in the summer months is beyond me. What imbecile decided that is when it would be raised? Like, when the heat would cause your bill to increase anyway…
Renegotiate their operating agreement and Remove the automatic rate increases clauses.
CUC eventually, but always get what they want from their Pen Pusher handlers! The biggest cartel in Cayman!
I’m still waiting on OfReg’s promised fuel price reductions which were to happen before the end of July across all petrol stations.
Ofreg sucks. Getting paid big $$ and don’t do anything.
CUC is not a monopoly provider if you’re prepared to choose greener options (e.g., solar and wind, etc.). We must learn to be self-sufficient – again. Let us take advantage of our wealth and make ourselves resilient. Programme incentives from Government would help, but ultimately it falls on us to make better choices for the future and our own self-reliance. Every house you build can be built with this in mind. And it would be an eco-tourism draw for the eco-minded tourists coming here. CUC should be our national back-up generator, not our sole source.
If you need to be connected to your “back up generator” you still need to make a regular payment for the service and maintenance of said back up.
“Bound by law”, OFREG act in good faith for what you’re paid to do and propose an amendment.
Laws can be changed, change is our only constant, we need to be protected from monopolies.
So there is a law that says you have title to your property now, how about we change that tomorrow and declare that your property now belongs to the Government?
CUC has a license agreement with the government going back to 2008, that agreement has multiple clauses which dictate the conditions under which the provider can amend rates, can you imagine the circumstance that would exist if the Government went about unilaterally changing the terms of agreements after they’ve been signed?
Government acts contrary to its commitments all the time. Take, for example, its failure to consistently follow, let alone enforce, pretty much any law.
Yup, there’s a good model we can follow as a society. While we are at it, let’s get them to also renege on the pension and healthcare promised to retired civil servants, the free education to children, the planning approval for certain developments under constructions (the ones I don’t particularly care for) and also forget about the invoice from the supplier who provided goods and services.
I am sure you would be quickly singing another tune once the Government starts acting “contrary to its commitments” and changing contracts and rules every time citizens become disgruntled. This is not a communist state and I thank God that we still have a stable and effective Government who lives up to its commitments.