CUC profits rack up as usage and customers grow
(CNS): More people burned more power in more places last year, especially during the summer, which turned into a growth in earnings for the Caribbean Utilities Company in 2022. As a growing number of households struggle to find the money to keep their air-conditioners on, Grand Cayman’s power provider made almost $3 million more last year than it did in 2021.
New commercial customers and more construction drove an increase of 2% in sales growth and the summer peak load growth of 2%. The number of customers also grew by another 3% to 33,119.
Reflecting on 2022, President and CEO Richard Hew said it was a positive year for the company. “Significant effort was made by CUC to innovate and progress major projects while continuing to offer operational excellence,” he said in a press release about the significant increase in earnings.
“The company responded well in the aftermath of Tropical Storm Ian and not many customers were without electricity service for a long period of time. Most financial experts are predicting a global recession in 2023 and that means that the Cayman Islands may likely see some slowing in the economy. CUC will remain vigilant and focused on being an efficient operation while providing an excellent service to its customers,” he added.
With $33.2 million to take to the bank, which is a $2.9 million increase from the net earnings of $30.3 million for 2021, shareholders can look forward to a dividend of $0.70 per Class A Ordinary Share.
A new record peak load of 113.6MW was experienced on 11 September 2022.
The company invested in projects to increase fuel efficiency, extend the life of its generators and allow the use of alternative, cleaner fuels, it said. Work on two 10 MW energy storage systems is also now underway after CUC signed a deal in September with the technology group Wärtsilä.
Download the full annual report here.
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Our problem is SPINELESS politicians who REALLY are only in there for a paycheck.
Its really time to get RID of Pact. We thought we would get better representation but its just more of the same.
What we need is an Ofreg that is working hand in hand with CIG with a goal to get Alternative energy in Cayman as quick as humanly possible and NOT when CUC wants to. They are milking the cow now.
I bought shares in CUC in 2019 and as of December 2022 the value of the shares is less and am now making a los even after receiving dividends.. I would like a positive return on my investment.
Stocks are long haul, friendo. Quit looking at the share price (any share prices, really) unless you want an early heart attack from thinking like a day trader. Diversify with some mutual or index funds and then don’t look again for 10 years!
Stock market is fixed and rigged, but not in your favour.
When investors buy, the whales short and steal money. When the price is low and the weak hands have sold, they pump it again.
Repeat ad nauseam. It is like printing money. The only way to profit is to hold on for dear life because sooner or later, the whales will need or want money.
What kind of shares? Are you receiving a cheque or are the dividends being reinvested?
Could have been worse. You could have bought Enron, or FTX.
Last May, Panton said the CIG needed to acquire and hold the majority shares in any future new renewable energy infrastructure, allowing Cayman to reap and retain the benefits of the projects and control of future energy supplies, and prevent consumer abuse by CUC monopolists. “We have to make up for lost time,” he stated when announcing the policy and stakeholder engagement to design the implementation plan. It was also said that the Cayman National Energy Policy Council would be involved in the consultations to shape the policy. In 2017 the NEP target was 70% renewable by 2032, today we still aren’t even at 10%.
The Premier says a lot of things. Maybe he can deliver on the dump first? I don’t think government has a track record of accelerating any infrastructure.
When Panton speaks you need to check in Saunders has his hand up the back of his shirt moving his lips.
Sounds like a lot of people want electricity but don’t want to pay for it. No where on earth is it free and no way on earth would CIG allow a better solution for the people. Best you can do is try to use less of it.
yeah,only to have a higher bill after consuming less🤷🏾♂️
Like most things in Cayman if you need it now and there’s only one supplier they charge whatever they want. Cayman has a large enough population to have multiple providers in the energy supply business but certain entities don’t want the monopoly game to stop, they’re just too greedy.
net profit roughly 100$ per household per month .
makes me sick.
Not really true. Customers include 5,000 commercial premises/hospitals/schools/GAB etc… Residential (households) account for 28k customers of 33k total but only 54% of sales (page 13). So we’re ‘only’ contributing $53 per household per month to CUC’s earnings.
I bet Flow and Digicel make more per cell phone per month!
How much net profit per household does CIG make?
On average about $20,000 per household.
Another awful PPM creation. The contract locked in poverty for Caymanians and protection for shareholders.
my favorite is the “renewable energy kwh” charge
I like that myself. That’s the money that CUC has to take from poor people who can’t afford to install solar panels, and give it to the owners of million dollar plus homes because they wouldn’t install solar panels unless they can recover the installation cost in less than 7 years. After they have recovered the installation cost the rest is just gravy coming in each month that has to come out of our pockets.
How does this happen you ask? Well it’s easy, you just put someone in charge of the energy policy whose livelihood is dependent on installing solar panels.
If CUC is allowed to reduce the amount they pay out to people in the CORE program there will be less incentive to install solar panels. Who in the hell would want to install solar panels that will pay for themselves in 15 years? Or who would be stupid enough to do it just because it’s the right thing to do?
It’s just another case of how the rich get richer and the poor get poorer. When the rich man puts a large solar array up on his roof he doesn’t come knocking on his poor neighbour’s door asking for assistance with payments. He already has government policy at work to solve this, and we all know who makes government policy.
The beauty of this whole fiasco is that we look at renewable energy charge on our bills and direct our ire at CUC. Same thing with government duty on fuel that is also detailed on the bill. This is much easier than looking to find who CUC are legally mandated to pass this money on to, and why it will be allowed to continue for a long time to come.
That’s to pay the spread on the 5MW Bodden Town solar farm with costs <$20mln, that was approved to be re-invoiced to Cayman public for $100mln by OfReg. 6 more of these planned.
$33M in profit…think about that folks..
It’s the profit margin that matters, not the $ amount of profit.
How much “profit” does CIG make every year? Off of you and everyone on island? Could that be why everything on island is so expensive including electricity? Think a little for yourself.
CIG revenue from residents is $650m
The real problem is that CUC is secretly mandated to control OfReg by way of its major shareholders and Lodge entrenched members of OfReg.
Renewable energy targets are meaningless unless meeting them ultimately positions CUC as the key beneficiary.
Until the power grid is wrenched away from CUC’s death grip and it becomes just another licensee, consumers will be duped out of a fair and affordable renewable energy future.
Make grid nationalisation, both power and communications matters for immediate reform by referendum. Only then will consumers be able to access a fair and sustainable deal.
Just like there is a FLOW to Digicel there needs to be an alternative option to CUC.
Someone could do a pretty funny meme parody of Shawshank Redemption scene where Andy gets attacked by the “sisters” just put the CUC logo over the “sisters” faces and Andy’s face covered having the wording Cayman resident.
Modern day pirates. I seldom burn my A/C, work 5 days a week, live alone, small condo in Prospect yet my bill is over
$300 this month. How is that even possible.
Terrible building standards and appliance condition.
I live in a 2,500 sq ft, 2-bedroom unit with one other person. Run my AC at 80° in the day, 77° in the evening, and 74° at night. Bills are less than $150/month. That’s the benefits of good insulation and a modern AC system, which is regularly maintained.
Yes, in grown-up-land, there is an air filter in the a/c air handler that should be swapped when clogged. For us, that’s a journaled monthly ritual, but you’d be surprised how many people don’t realise that there is a air filter, or even where it is. These are the same people that don’t check oil in their car until the engine seizes.
There is no way that you have a 2500sq.ft. home with AC and a bill of less than $150/month. My home is 1900sq.ft., I had brand new AC systems (air handler, condenser, ducting etc – brand new full installation) installed 2 years ago (and it has been professionally maintained). I have had spray foam insulation installed this year. I keep my AC at 80 in the day (all rooms), and 77 at night (only bedrooms). I also have a gas stove and new washer/dryer. I have spent over $30,000 on this property alone in the past 2 years to try to “save money in the long run” and my bill is still $500/month with current rates.
If you’re not lying (and you are), share the info of who does your AC work so the rest of us suckers can fix our situations.
House was built by Arch & Godfrey. Used to have Polar Bear do the AC servicing, now I’m using Andro.
Sounds like you have some real challenges with your home’s thermal envelope and management. Sorry to hear that and I hope you discover the cause!
If you have any appliances over 10 years old, even if they are still working, try to replace them with modern appliances. LED lights. Smart Thermostat. Instant hot water heater. Window/door seals, roof insulation. Unplug chargers not charging. Check ceiling fans, wiring, switches and plugs. The load center box itself might be old or corroded and loosing efficiency.
Pull myself up by the bootstraps when I cant afford boots?
Our diesel burning monopoly grows it’s profits while the solar energy transition leaves us behind.
Follow the dividends…
since they are making record profits, the rate hike that was delayed from summer isn’t needed?
This news will go over like a lead balloon
CUC needs to switch from diesel as a fuel and find an alternative fuel that can provide power at less costs and reduce CO2 SO2 and other emissions into the air. Gov should place a mandate on CUC or an environmental sustainably act by Parliament to make CUC begin to switch to a cleaner and less expensive source of energy by a set future date.
Hydrogen and Sea Water to energy conservation would be a very viable option.
They should use hot air to power their turbines. It’s cheap and plentiful in Parliament.
Diesel engines can be converted to burn emission-free ammonia, and/or biodiesel made from used fryer oil. Alas, like “free solar power”, we can be sure that none of these fuel cost input savings would be passed along to consumers.
CUC’s stated target of 25% renewable by 2025 is just two years away, on course to fail, and too little given the lateness of the hour on the planet already at +1.2’C.
“Hydrogen and Sea Water to energy conservation would be a very viable option.”
Everyone who thumbed up this comment needs to go back to school and learn some very, very basic grade 8 science. Dear god.
Yeh, like the ones who thumbed up just don’t understand the first law of term-ho-die-nam-iks and the losses incurred in energy conversion.
Is that 0.79 or 0.70 cents or per ordinary class A shares ? asking for a friend.
They always make a profit – while their customers struggle to pay their high CUC bills.
3% increase in customer, 2% increase in usage… but 10% increase in revenue. Then it must be because of overcharging clients.
cap the amount they can earn so we can afford to cool our homes!
Gov’t sanctioned 1000% over-invoiced cost on 5MW Bodden Town solar proving to be fantastic for the corporate bottom line.
CUC did not build the BT solar plant. Neither do they own it now.
Former ERA thrust the 13MW renewable energy obligation on CUC way back in 2011. CUC put it out to Expressions of Interest (EOI) with two bidders. It took until late 2017 for Entropy’s solar farm to come on stream with peak 5MW. It was 6 months late, cost $9.7mln plus now-redacted cost overruns. The Power Purchase Agreement (PPA) between Entropy and CUC passed along to Branson’s BMR Energy in 2019, but consumers of Grand Cayman still only have one company delivering and selling us that product, and that is CUC. They still enjoy an alarming amount of pricing flexibility by our regulators, and still haven’t yet reached the 13MW target set by ERA in 2011.
https://www.ofreg.ky/viewPDF/documents/energy-publications/2021-05-12-03-12-37-Entropy5-MWSolarPVPostProjectReviewI1539704567.pdf
There in excess of 13 MW of renewables on the grid already. Rooftop alone is more than 13 MW.
Don’t worry OfReg will protect us…
CUC charges you for electricity and then also charges for the fuel used to create it. Then they get the gov to give them waivers to bring in solar panels. Then they charge the same rate with fuel to customers using solar energy.
What type of XXXX is this?
Please explain
We fully allow them monopoly status why would they stop themselves?