More customers and consumption fuel CUC earnings
(CNS): With the economy recovering from the pandemic and a rise in the number of customers using more power, CUC’s earnings increased by around $1.9 million in the first half of 2022 compared to 2021. In a release issued Friday detailing the unaudited accounts up to 30 June 2022, Grand Cayman’s power provider said a 3% increase in customers and a 2% increase in kWh consumption fuelled the 16% increase in net earnings for this year.
“Volatile fuel prices continue to present a challenge for the Company and its customers,” CUC said in the release, noting that the fuel factor revenues totalled $30.9 million so far this year compared to $21.4 million last. “CUC passes through all fuel costs to consumers on a two-month lag basis with no mark-up,” the company explained.
The average Fuel Cost Charge rate billed to consumers during the first half of this year was 20 cents per kWh, compared to the average rate of 13 cents during the same period in 2021.
However, CUC said it is taking part in the OfReg solicitation for utility-scale renewable energy, which will transform the energy sector in Grand Cayman and ‘green’ CUC’s grid. The tender process involves selecting a bidder to operate and maintain solar photovoltaic plants and energy storage up to 100MW with a 60MW battery energy storage system facility. OfReg has also issued an RFQ for a solar plus storage 23MW dispatchable photovoltaic generation plant facility.
CUC has received approval from OfReg for a 20 MW battery, which will assist the diesel generators with grid stability during any loss of generation and also reduce fuel consumption. This project is underway and it is anticipated to come online in late 2023.
CUC President and CEO Richard Hew said the company was excited that the process to procure cleaner and lower-priced renewable energy on a large scale had begun.
“The significant increases in diesel fuel prices has been and will continue to affect our customers’ bills. The company has been proactive in its messaging to encourage customers to take the necessary steps to conserve energy and is collaborating with the OfReg and the Cayman Islands Government to find ways to mitigate the cost impact in the short term, particularly during the high consumption summer months,” he added.
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All of you should buy shares in CUC, can join a plan to buy a few shares per month and reinvest the dividends in shares and build them up until retired, then collect the dividends to help out with your pension. Good plan, i am glad that’s what i did.
It’s a nonsense that solar power is not used more without you having to get permission or pay CUC or whatever convoluted system they have. The sunshine is free. Make more use rather than rely on diesel. It’s a no brainer. Wind power would also help but the turbines are not aesthetically pleasing.
Bring on a dividend increase!
Why are the cayman islands still using diesel generators? With all the power that could be produced through solar panels there is no need for fossil fuel generators. Treat the climate crisis as a crisis
One major indicator of the cayman isl problems is the government joining hips with the wrong sides consistently. We use Biden era talking points, will not be under BRICS and are now taking grants from the EU. When cayman’s rolling black outs start and the dollar cannot buy food or a place to live. We will see quickly historically nations become more like venezuela
Kenny and others; instead of hand outs; start purchasing shares for your coonsituents.
Soooo. CUC is taking the opportunity of higher than normal fuel cost to make record earnings. You know SOMEONE should do something about this seeing as CIG is having to absorb cost.
There is no profit to CUC on fuel costs. Please reread the article, slowly.
Try reading the article.
Yeh why not rub it in the face of struggling consumers. Would have been nice if for once these greedy corporations could be not-for-profit while we go through this. They are not hurting in the least.
Earnings were down in Q2 compared to 2021. Rising fuel costs are clearly damping down recovery following reopening of the island.
Yeah, and like all the other increases in profits and the audacity of frequent publishing publicly…. yet STILL find the heartlessness to stick their customers with higher rates.
Thank you CUC. Real sweet!!!
Apparently CUC and I are using two different definitions of what exactly constitutes “a challenge to consumers”… Theirs seems to mean windfall profits while mine means struggle. Silly me.
You and me both.
Robbing us blind!
Decco and Dart need to hurry with the WTE so CUC CAN BE NO MORE MONOPOLY OF GREED.
So basically government is paying CUC on behalf of people who don’t or can’t pay. Who exactly qualifies for this benefit and how is this doled out?
Ain’t Government going to take care (pay) any fuel factor cost across all 3 islands from July, August and September ?.
When half if not more of our top Govt officials are shareholders in CUC what do you think is going to happen?
The Brac and LC got DART to contend with now though; good lick there.
…paired with a guaranteed margin monopoly, absent of Regulatoy oversight, and with astounding climate policy gaps. Like shooting fish in a barrel.
Like a licence to print money
For the umpteenth time, there is NO guaranteed margin.
no guarantee as there is no magic check being written if they fall short of said profit, but if they do fall short, they get to raise the rate to make sure they get that profit again next quarter.
i mean, by the logic of CUC get to charge x amount to achieve the accepted profit (as determined by the government) then, the price of CUC should be going DOWN as there are more people and home paying that amount.
for instance, if the agreement is CUC gets to make 4 million dollars of profit per quarter, 70,000 people instead of 60,000 people paying that 4 million, should drive the price being charged to the individual consumer go down (not counting for the cost of fuel as that is past directly to the customer). instead, we see record profits.
Try reading the actual license…
Can we have a pi55ed button?