CUC increases base rate on electricity bills by 3.2%
(CNS): The Utility Regulation and Competition Office (OfReg) has approved an annual base rate increase of 3.2% on CUC bills, which will come into effect on power used by customers from 1 June. The hike comes as Cayman Islands residents are struggling with the rising cost of living and after CUC saw its earnings increase during the first quarter of this year by 18%. CUC’s rates are reviewed annually using a prescribed formula with inflation indexes as a reference. Officials said that customers could expect to see a “marginal increase” in bills in July.
The average monthly residential household consumption during 2023 was 1,153 kilowatt hours. Based on this consumption level, the average residential customer’s monthly facilities and energy charge will increase by CI$4.88. Information on this rate change will be provided on customer bills.
“This energy charge increase will be offset in part by fuel efficiency savings as a result of recent upgrades to two of CUC’s large generating units,” the company stated in a press release. “There are plans to upgrade three additional generating units by 2025, which will bring further fuel efficiency savings to customers. Additionally, future fuel savings will occur with the implementation of the 20 megawatts Battery Energy Storage System (BESS).”
CUC said this project will give customers annual savings on fuel factor charges and will offset most of the energy charge adjustments, though, they did not say when or by how much. However, the company said that customers would begin to benefit from the increasing use of solar and a decrease in fuel factor in August.
Fuel factor rates are pass-through costs of fuel purchases. Any fluctuations in fuel prices will consequently impact these fuel factor rates.
Meanwhile, CUC urged customers to stay mindful of their electricity usage. During the summer months, the heat index and increased demand for air conditioning will lead to higher electricity consumption. The company noted that there are energy-saving tips on its website to help customers manage their usage efficiently.
More information about the terms of the CUC T&D Licence, the rate cap adjustment mechanism and the current rate schedule can be seen on the CUC website and the OfReg website.
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In the midst of soaring living costs, Butterfield has just launched a ‘use your debit card more, incur more exorbitant fees and win’ contest.
Which out of touch imbecile thought this up, and when are there going to be controls over what banks are charging????????
How about ‘self-restraint’ with debit card usage. I haven’t used one in years. Currently I don’t even have one.
Shut the heel up. As much self-restrain i practice, CUC still needs to be paid.
“Shut the heel up.” Well there is an intelligent comment. Please consider that CNS is a public forum for discussion (both pro/con on issues/news) – your comments imply you do not wish to read and consider comments unless they agree with you.
However, after your initial comment, I completely agree with you. Even with self-restraint, you need to pay for what you purchased.
And I’ll emphasize – debit cards are horrible (not new news) unless you have balances that can pay every cycle – don’t use them if they don’t fit your circumstances.
You make good points, which I happen to agree with, but your message gets lost in the patronising and arrogant manner in which it was delivered IMO. Be nicer. Just saying.
I disagree. If you re-read my comments there was no effort to be arrogant or patronising, just a simple suggestion. AND, I did not resort to foul language, so who was being arrogant?
When will OfReg deal with the licence renewal for Cayman Water? Only in Cayman can you see a utility being allowed to operate without a current licence.
There have never been efficiency savings passed through to local consumers in the full history of the CUC franchise. All of this theft sanctioned by the CIG.
Get ready for the 2nd quarter results from CUC…..and then again at the beginning of October….
#caymanbendova #whoissonji
What’s the worst part is you can’t go half a year without hearing the words ‘record profits’ in relation to CUC.
And yet..
+ Smash the CUC Monopoly
+ Seperate Generation from Distribution
+ KICK TO THE GUTTER that discredired “CORE” Program
+ Unleash the power of Distributed Green Energy
> Net Metering Now!
+ No more North Korea/Soviet style 25 Year (private enterprise) Plans which copper (gold plates?) fastens their monopoly
+ GIVE US BACK THE DISTRIBUTION SYSTEM THAT WE PAID FOR POST IVAN – with the “SURCHARGE”, where we the tresident of Grand Cayman paid for (but were not allowed to “buy”), CUC’s brand new Transmission system
+ Look what happened when Cable & Wireless lost their monopoly – what ensued was better service and by far cheaper rates (YES, even if telecoms are bad now, it was a million times worse in the 1990s…)
+ Shame on CUC and COG and OfReg.
What’s wrong with the CORE programme, please?
This is my situation, which is what makes me believe that CORE works well:
1. I’m in a 2019-build house (so well-insulated)
2. I have the maximum number of solar panels.
3. My aircon is on timer for mornings and evenings.
4. My electricity bill last month was CI$ 30. It’s never been more than CI$ 200.
Not every one can live as you do.
So, assuming you sell your excess electricity to CUC at a premium, we, the none-CORE customers, sponsor your solar panels.
and you think anyone reading your comment cares?
Must of started saving up for the new LNG plant they want to build.
“Meanwhile, CUC urged customers to stay mindful of their electricity usage.”
Translation for those that don’t speak bullshitese: Learn to live with less power, if you want to save money. For those of you on the margin, consider living in a tent without power.
Programable scheduled consumption is important. It’s surprising how few bother to use a digital thermostat. Pays for itself in 1-2 bill cycles.
CUC who are you BS’ing with statement? “This energy charge increase will be offset in part by fuel efficiency savings as a result of recent upgrades to two of CUC’s large generating units,” the company stated in a press release.
This statement is fine if the Fuel Charge is being removed from the bills. But come on now…”Offset?” your fuel charge based on kilowatt usage is flat across the board. The other fuel guzzlers generating units still use the same fuel charged to us. Where are the savings to consumers? Get the “F” outta here!
This is disappointing in the CIG and CUC!
So the only factor in the annual review is the inflation increase. The review should take into account CUC”s profits, right now they could increase profits by 100% and stii get there annual COLA increase, this makes no sense.
Meanwhile, less than 15 miles south of George Town, there are fields of black smokers emitting mega watts of unharnessed free limitless thermal green tech power. The UK has innovation grants that could be used to harness this power source and deliver free power to every household. But no.
What is this a reference to, please?
I believe the genius wants to harvest energy from the Cayman trench! I’ll wait for the movie on the sci-fi station.
Let’s not forget that Government ‘forgot’ to issue CUC notice of their intent to revisit their License agreement by the April 2023 deadline, so the current agreement automatically rolls, as is, for another 20 years.
Absolutely shameful.
You couldn’t get away with missing a deadline like that in the private sector.
Guess Hew was in power then.
To maintain the monopoly mandated profit margin CUC are “forced” to increase the pricing, on this occasion using the “base rate increase” path. CUC are not a business in the traditional sense as the monopoly model guarantees the profit margin and the profit guarantees the dividend. There is no motivation from the CUC shareholder base or CIG to upset this status quo. There is no motivation from CUC to change the model and risk the gravy train.
Before the next election ask your candidate how many CUC shares they hold and ask their position on the CUC monopoly. It’s disgraceful!
CUC offers one of the highest tax-free dividend yields in the world. It’s an income machine protected by vested politicians, and Cayman’s donor class. They aren’t going to touch it.
Tax-free is a misnomer, because taxes apply to where the investor is domiciling their investments.
Currently CUC yield is around 5.3%, far, far lower than the top dividend yielding stocks in the market (which are in the 7-11%+ range).
There is no “mandated profit margin” in the CUC license. Has not been the case since the current license was signed, OVER 20 YEARS ago. Please let’s review/argue about facts.
Sadly, nobody is listening to facts. Save your effort – can’t fix stupid!
Where can we read this to verify?
CUC’s T&D Licence, which is available on their website.
https://www.cuc-cayman.com/about-us/our-licence/
thats 3.2% on top of the Hurricane Beryl surcharge no doubt.
Does that mean that the rate CUC pays to the houses which sell electricity back also get an increase in the rate paid back?
Better yet why aren’t CUC forced to pay the solar CORE program participants? All you get is a credit to your CUC account which you lose at the end of the year if not used. Fosters nor Rubis accept my CUC credits! This is highway robbery and yet the CIG and the regulator does nothing about it.
I have to tell you, not a lot of people have sympathy for someone with a zero electricity bill when we pay $0.008 cents per kilowatt hour of renewable energy so CUC can credit your account.
Shows the lack of understanding from the general public.
…and then CUC sells it to EV owners through their carpark posts at $0.40 per KWH. No on/off peak price differential. The same rate 24/7. Where is OfReg?
I dare any one of our 19 representatives to stand up for the people against CUC on this.
I call on the United Peoples government to explain to the public why no effort has been made under your watch to renegotiate the CUC contract.
Any representative that has the balls to fight CUC on this will surely be reelected.
it will also require intellect which sadly, this bunch is missing.
8:02, It also requires one not to have a financial interest in CUC yearly dividends which the majority of sitting representatives have.
Members should be required to declare their conflicts of interest.
They are required to. But have any, any of them, done this?? *Crickets
I guess customers have to shell out for new CUC assets as in battery storage. And swallow the CUC BS about fuel savings. Fuel savings for who, certainly not the customer?
Maybe Peter Gough was forced out of OfReg for not wanting to go along with this rate increase? The timing of exit of certain key individuals and installation of others at OfReg is rather coincidental considering this increase kicked in on June 1st.
This is just ridiculous and I’m very curious to know who has shares in CUC. Anyone know if this is public information and available online somewhere?
It’s a publicly listed company that you could buy shares in. Individual shareholder identities are likely not public, although it has been public knowledge on-island for many years now that certain people, their families and close connections are shareholders (heck, they bragged about it enough back in the day). Its also common knowledge that parliament mandated minimum annual dividends, like high risk investing with a secure and guaranteed return. Win win if you are in.
‘ Its also common knowledge that parliament mandated minimum annual dividends, like high risk investing with a secure and guaranteed return. Win win if you are in.’
Where did you get this BS from? If so why didn’t you get ‘in’.
The ‘exclusive licence’ with CIG allows CUC a 15% annual return and a full pass-through of fuel costs, adjusted monthly. The Auditor General covered this over two decades ago: https://parliament.ky/wp-content/uploads/2022/05/9781823.pdf
I don’t recall anything changing in subsequent Licence renegotiations so the 15% minimum return still applies.
In response to your second question unfortunately I never had sufficient cash in the bank to be able to afford investing in stocks and shares. But my point was that our politicians, their families and friends did, and government effectively guarantees their returns. Clearly conflicted.
Just because you don’t recall it doesn’t mean it wasn’t there.
Suggest you go give the 2008 License a read and you can identify while there is a “target” return range, there is no guarantee of profits and certainly not at 15%.
This is a categorical lie. Refrain from spreading false comments.
I categorically stated I was not aware and stand corrected (not by you I might add). Chill out man. Either way, I’ve been around long enough to know something stinks, and its time to put an end to conflicts monopolies and vested interest.
SIPL records aren’t completed fully, public, or updated in realtime. All part of the opacification of this and previous tainted regimes.
All the elites with savings do, also their donors, and their voters.
Why do you want to know? This is private information.
5:26, Simple. So that everyone can understand the clear conflict of interest which exists with our Ministers and elected representatives and why no action is ever taken to control CUC’s continual rate increases and excellent profits.
This is covered by making politicians declare their interests, which has not been done.
A broad request to know every Tom, Dick or Harry who owns CUC shares serves no purpose.
This is robbery!
Posters should note that:
(1) OfReg board members are required to divest of all Cayman Islands public utilities shares. The Auditor General could investigate.
(2) It is minimum profit that is guaranteed in CUC’s license, not dividends. Perhaps it is time to revisit regulations governing rate increases to make it fairer on customers while allowing CUC to remain profitable to reinvest in the business, improve cost efficiencies, etc.
(3) While anyone, subject to laws and regulations (e.g. (1) above) can purchase CUC shares, CUC customers can sign up for the share purchase plan and purchase a few shares on a regular basis so you too can benefit from the dividends that some posters think are generous.
The government should tax all shareholders the same amount and distribute the taxes equally to CUC customers except shareholders. Ok, I know this will never happen, but I would enjoy seeing them fleeced of their profits just as they fleece their customers while trying to present an image of being a ‘caring’ company. They are nothing but charlatans.
Really?! You obviously have zero grasp of how businesses work. Go buy yourself a generator and go off the grid instead.
Dividends come out of profit, same thing.
WTF Offeg!!!!
Tired if stuggling and getting nowhere in my country.
Higher light bills (again) and robust taxes seem the only guarantees here.
Try turning off the lights when you exit a room. Also reduce your a/c usage. Also get solar installed. Lots of solutions beyond your nose.
What a stupid comment. If solar was affordable everyone would have it. Have some compassion.
4:49 Please tell us how we can afford solar panels while we live pay check to pay check and just surviving
I hope cayman survives the amount of greediness from the government. “cayman kind” my ass.
Yea to CUC for looking out for the little guys! So many posters here simply don’t understand and actually read the article.
Why are we complaining? We wanted grass roots politicians to represent us. So we got Bernie Jay Kenneth Saunders and the list goes on.
Why did we think these dudes were capable of solving our problems.
look at the Gold fish memory on display again. the whole island was crying about the big wig politicians not doing anything for us either. what we’re seeing is that nobody with morals and intellect is aspiring to be a politicians.
Not gold fish memories, but rather revisionist history driven by paid PPM shills in a feeble attempt to get those dinosaurs back into office. As if their collective interests align with those of the common man in any capacity.
Yes, in these times of crises where people are struggling to make two ends meet CUC who is making so much profit is raising our bills again? When will our politicians look 👀 into all this? Salaries remain the same, single parents, retired people are struggling as it is, CUC should be giving back to us, not constantly taking from us. Then we want to try to control crime? When people are not able to pay their essential bills what do you think will happen? May God help us. It’s always the lower income people who suffers.
Cayman corruption at its finest, makes me physically sick. I can hardly pay my rent without this hike too now. I just turned off my A/C to screams from my children, no daddy we hot. Hang your heads all of you
If the Government dont put a stop to this im going to believe whats been said many times, “The Entire political arm of the Cayman islands governemt is steeped in corruption”. I’m not voting for anyone of them that dont have CUC and the Banks as a top top priority!
Good luck with that. Our Ministers have been re-elected notwithstanding decades of corruption. The Cayman electorate has no ability to elect better Ministers. We elect clowns, we get the circus we wanted.
wouldn’t it be nice if our salaries were being adjusted yearly for inflation.
Sure, real jobs that require education, professionalism, dedication, experience will offer you that. I guess you struck out on all counts…
Lucky you. I have one of those “real jobs” but unless you’re either on top of the totum pole or “in with the right people” raises are not annual or in line with inflation. In fact they are rare.
I guess you view yourself as ‘unlucky’. When I changed jobs several times over 41 years I always applied to only positions with a history of annual COL increases. I didn’t depend on ‘luck’, I planned and incured my future – hence I have no reason to blame others for my situation, which due to self-responsibility is quite comfortable. And I may add, for the last 26 years I had my own business and every employee had annual reviews and pay increases. I always scratch my head in wonderment when I read about folks that are in poor jobs but have no inclination to improve their circumstances. Sorry, but your situation is what you make of it.
Happy for you appreciate that career advice. However I’m now 60 and retiring after working all my life in law. I can’t think of any law firm (not just those I worked in) that ever guarantees annual COLA. Only if they made enough profits and you got lucky. I mean, here in Cayman tell name two companies that give such guarantees. I’m not saying they don’t exist it’s just I’ve never come across any mention until now.
Well, I guess you choose poorly…
You’re a real righteous Ahole.
And you have an admirable vocabulary.
Doesn’t help when people like you come here in a position of power and only look out for your own.
My employees wouldn’t agree with you – I looked out for them and their families. And now that I have retired, after ‘looking out for myself’ I am able to be very generous with several charities. Your bellyaching tells me a lot of why you are in your situation.
Wonder how many were on a work permit for minimum wage?
Easy answer – Zero.
comments of a intelligent idiot. AI will replace a lot of you mouse clickers that sit high and look low.
After grabbing record profits off the backs of users who can bearely afford to make ends meet, CUC have the audacity to ask for a rate increase? Why? Isn’t 18 million in PROFIT enough? Whose interests are Offreg protecting agreeing to this extortion? Evidently not the consumer.
Offreg and our government reps are so highly paid rate increases dont affect them none at all. None of them have to choose between buying bread, feeding the kids or paying bills. They can’t relate to what we are going through. They all need to hang their heads in shame.
So, elect better Ministers.
Please direct me to these “better ministers” from which I can select…
Anyone for monopoly?
they gOt the JAZZ going on with politiciana! ha ha ha
As long as politicians dislike CUC and what they doing…it will continue! lol….
So the pittance of an increase ‘given’ of their own money to private pensioners now goes into CUC’s pockets!!!!
OfReg, CUC, government…not printable where you should all go!
Meanwhile, CUC urged customers to stay mindful of their electricity usage. During the summer months, the heat index and increased demand for air conditioning will lead to higher electricity consumption. The company noted that there are energy-saving tips on its website to help customers manage their usage efficiently. What? So let’s increase the rate in June and hurricane season…mindful??? Energy saving tips? Tio – get rid if these inhumane people government CUC and the rest!
So what you described is basic energy company usage profiles – all over the world. Cayman doesn’t get a pass just because they ‘want it.’ Get educated on how this stuff works in a real world. Oh, yea, energy will cost more when the demand grows – economics 101.
“all over the world” rarely includes a monopoly provider. The rules are very different. Comments from the entitled are not often productive.
And comments from the uneducated and uninformed are even less productive – they just spread poor knowledge with no real data points.
With your logic, I can make confident guess that you’re not as educated as you’d like the rest to believe. Demand + Scarcity raises the prices. Let me explain it in a simple way your arrogant uneducated brain can understand. If CUC has a generator with a higher capacity than the current output, then more demand (More customers) would make them more profit and bring the cost of running the generator down. Not to forget, fuel costs are passed on to the customer. Make sense yet? I won’t hold my breath….
Laptop computers in the 80s were circa $4k. Demand has grown hugely but the prices are lower. It is because it has become a very competitive market leading to reduced cost. The supply and demand rule is still in play, but the variable of competition reverses it. – economics 102
Perhaps Mr/Ms educated, informed and entitled didn’t manage 102?
Are they f***** joking?
No joke. When demand goes up, so does charges. Basic stuff Bobo.
In actual fact that isn’t how it works at all, there are variable parts of the formula you have completely ignored.
for 5 years now I’ve been asking that the CIG reduce the duty rate on fuel. That is one way to reduce cost of living across the board in a time when CIG has record revenue. This would have been smarter than the stupid electricity credit under 2000 kwh in 2022.
the 2022 programme targeted those who needed help, but your suggestion would help the rich people much more at the expennse of the poor!
Well it would also help the supermarkets, hardware stores, etc. Which would hopefully get passed on to consumers.
With no consumer protection, I wouldn’t wait for the passed-on savings.
Just cut back on the business class seats and the wife’s new Tesla SUV this year , you will manage just fine.
another spiteful comment from the entitled.
CUC customers will either die from heat strokes or heart attacks – because we will not be able use the ac, due to such high bills the majority of customers have to pay.
CUC has no empathy for their customers!
the Cayman Islands government supports and allows it!
Gotta pay those huge dividends. Only in Cayman
How many more years of fleecing until there are publicised “on”, “off” and “mid” peak utility grid power rates mandated by our supervising officials, like in the rest of the civilised world? Off-peak rates, typically evening hours, are usually booked some 40% cheaper than peak on rates. Yet, CUC charges the same base rate 24/7/365 regardless of demand load. That’s a special grade of BS just for us.
Individual CIG officials want to maximize their CUC dividends / profits so there is absolutely no way CUC will implement on, off and off peak rates.
We will never see a change in rates because our highly paid regulatory officials don’t regulate. They are a total joke.
We need to bring in independent regulatory officials from London.
That is our only hope.
Our elected officials do not have our best interests at heart.
Agreed, and let’s say that again because it bears repeating:
“Our elected officials do not have our best interests at heart.”
Policy makers, that genuinely care about constituents, and seek to be re-elected. should note that there are always “plans” just around the corner to catch up with sector norms and best practise in the rest of the worldwide utility industry. CUC has no execution plans to catchup, or they would. Same goes for telecoms. The Cayman Islands consumer is getting royally fleeced at every opportunity, while policy-makers sit on their hands and/or stoke it from the sidelines. This open deception is very profitable, until it’s called-out, contracts cancelled, and licenses withdrawn for breech.
11:13, Don’t be silly. The policy makers have shares in CUC and are laughing to the bank to the cost of their constituents who own no CUC shares.
That is the reason why CUC makes great profits every year and nobody in CIG does anything about the situation.
So simple really. The Cayman Islands is only a place now for rich folks as nobody else can afford to live here.
Exactly, and the government guarantees the dividends so a nice silver lining to their conflicted pockets. Let’s not forget their “arrangements” with family and friends either. Fingers in every pie.
How can CUC get away with raising the rate in June but not telling the public till July? If I bought an item in a shop it has to be sold for the price advertised. In the legal world a person cannot be held to a standard that didn’t exist prior. So how the hell can CUC get away with charging me MORE for my June consumption but not tell me till after the fact in July?