Gov’t considering how to cut fuel costs and light bills

| 02/08/2024 | 31 Comments

(CNS): André Ebanks, in his role as acting finance minister, said the government was considering ways to help people face the cost of living crisis and high summer power bills. But a relief programme like the one that was rolled out in 2022 would now cost around $8.6 million. Opposition Leader Roy McTaggart has called on the current administration to use a windfall of duty fees, which exists as a result of inflation, to cut import duty on fuel for a year and subsidise light bills during the summer months.

During a recent parliamentary debate on a private member’s motion presented by McTaggart and supported by Barbara Conolly, Ebanks said that cutting fuel duty for a year would reduce revenue in the budget by $17 million.

Nevertheless, the acting premier said the motion was being accepted and its intent would be considered, albeit heavily qualified. He said the government wanted to help people but had to do so with financially sound measures.

Ebanks said the government had not been able to readily identify savings elsewhere that would cover the loss of $17 million “at this stage”, as he pointed out that helping those in most need would be a better approach rather than blanket reductions or support.

“The government is aware of the significant cost pressures affecting our people, and we are considering active measures at the moment to alleviate the financial burdens of our citizens, but we have to look at it in the round,” he said.

Ebanks said that despite budget constraints, the finance ministry and the chief officers across government would be looking closely at the state of the public finances during the first half of the year and projections for the second half and see what can be done to find more money. They would then consider this against other proposals and see which ones would have the “most direct impact that are affordable”.

“We all want to help our people,” Ebanks said, adding that the government would consider the proposals. However, as he accepted the motion, he said there was a real world and there were other expenses that needed to be balanced.

When he presented the arguments for the government to reduce fuel duty and roll out the subsidies for power bills, McTaggart pointed out that the drop in the headline inflation rate did not mean that the cost of living crisis had gone away as prices were still climbing. He said it was the government’s job to help its people when they were suffering, and with everyone expecting the summer to be very hot, cutting duty and reintroducing the electricity relief programme would offer some help.

McTaggart suggested that prices in Cayman were at least 20% higher today than they were when the current government took office in 2022. But prices had not increased evenly, as utilities and rent had increased by around a third, he said as he spoke about the recent public outcry after CUC rolled out its annual rate hike, which is part of its contract with the government.

McTaggart went through a list of food items that have dramatically increased, as well as the cost of fuel. At the same time, wages have remained flat, and many Caymanians are in low-paid jobs. He said Caymanians were facing massive increases in the cost of basic goods they buy every day when their earnings have barely gone up, if at all.

Following the debate, he thanked the acting premier for his calm response and urged him to do what the motion asked, maintaining that the government could afford it. He said that MPs were all aware of the problems, as they were confronted daily by a steady stream of constituents in need. But the number of people in need was rising with increasing bills and a worsening cost-of-living crisis. But he said he did not have ten or twenty thousand dollars to give away every month.

See the session of parliament on CIGTV below:


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Category: Government Finance, Politics

Comments (31)

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  1. Anonymous says:

    Explain to me how my CUC bill is nearly double when I keep my A/C OFF so I know for a fact that I’m not actually using it even though CUC is trying to say that I’m using more energy because it’s hotter. Other months when I’m on vacation my bill is still higher purely because it’s “summer time”. Yet mysteriously during winter season the bills are lower although my electrical consumption doesn’t change. This has been happening for years.

    • Anonymous says:

      If I run across another politician that tells me “we’re in the same boat”, I think I may explode.

      No, Sir/Ma’am, we’re not ONLY in the same BOAT, we’re not EVEN in the SAME [expletive] OCEAN! AAAAAAAAAAAAH!

      Sorry, my inner channeled Sam Kinison got out. I hate it when that happens.

  2. Think foolish says:

    How about using the $17 million to bulk purchase solar panels and inverters from China. These could then be resold at cost to the public supported by a cadre of solar installers trained by the local college. We will gain quite a lot of employment for unemployed youth while making solar more affordable for the middle class and lower. Just do it!

  3. Anonymous says:

    Government’s over-regulation across many industries adds to our high cost-of-living.

    Charity begins at home; Government heeds to take the log out of its own eye before trying to take the splinter out of industry’s eye!!

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  4. Anonymous says:

    Nationalize the power grid and provide it for free. Simple.

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  5. Anonymous says:

    writing checks is not the answer…but that’s what you will get.
    welcome to wonderland.
    any comment Mrs governor?

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  6. Anonymous says:

    taking off duties is a good thing only if it’s passed on to the consumers , which most of the time its never happens, In the Brac the power Co. was duty free and also gasoline is duty free but its more expensive than Grand, also building materials etc. Duty free only makes the businesses more richer. Government NEVER checks to see if it passed on.

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  7. Anonymous says:

    These islands are getting more and more expensive; more wealthy people moving in not helping as this is driving up cost; constant increases in food and electric destroying the middle class.
    CUC making 18% profit; this profit should be shared back to the people.

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  8. Anonymous says:

    Waste to energy plant should be from the CUC monopoly. Introduce good old fashioned free market competition.

  9. Cayman’s ministry of Silly Walks says:

    There is no such thing as a low energy rich country : I only wish someone in CIG would reflect upon that and act accordingly with an expanding economy and population access and quality of service regarding energy will only become more problematic the longer elected officials sit on their hands addressing the problem that is energy security , infrastructure and independence.

    Increasing efficiency doesn’t address the ever looming supply side issues, what do you think will happen when financial services can’t insure telecommunications despite paying one of the world’s highest cost of electricity ? They will do what any high net worth individual will do, that is vote with their feet!

    At this stage the cracks in the system do not show yet, but by the time they will you might have to look at a tear down and replace from the slab up . All of this can be averted if the National Energy Policy would be actually acted upon and regulators doing their jobs regardless of conflicts of interest.

    Ofreg so far has proven completely incompetent and ineffective at upholding the terms of the license granted to CUC, rendering the terms of the granted license completely unenforceable and by essence null !

    I find it astonishing that so far so little has been accomplished by multiple cabinets to implement solar energy storage solutions, when a bid was drafted said bid was crafted in such a way as to exclude local companies to compete, leaving a single potential bidder whom is financially in turmoil due to a severe alteration of its financing structure, in conclusion the Wartsila deal is as dead in the water as the ReGen/dump deal if not even more so !

  10. Anonymous says:

    A. Say NO to the new Cuc Solar Power takeover bid!!!
    B. Allow millionaires foreigners to pay higher permits.
    C. Bring a Luxury Property Tax for any non locals with over a Million$$ property.
    D. Block non locals from Watersports operations, or pay higher fees for staff and operations.
    E. Stop the NAU vouchers fiasco!! Give them most essential foods and items directly..imported at less
    cos t!

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  11. Anonymous says:

    Say NO to the new Cuc Solar Power takeover bid!!!

  12. Anonymous says:

    Can always tell when elections are coming!! Our politicians scramble to get things done so we think they been working hard for us all this time Lol!!

  13. Anonymous says:

    So I bust my ass day in and day out to put food on the table and keep the lights on and the relief you are only consider is for me to fall flat on my face before your help lessen the burden? Young man, what you are creating is a social state that will be heavily dependent on government. Maybe it would be easier on myself to just throw my hands up and let you all take care of me and my family?

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  14. Anonymous says:

    In Camana Bay many of the shops and bars e.g. Next Chapter, Karoo, Sunglass Man blast their air conditioning and leave the doors wide open, so it blows onto the street. They must have money to burn.

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    • Anonymous says:

      Oh but they do, Camana Bay also has the largest carbon footprint of any development in the Cayman Islands. Checkout the energy usage per sqft. Oh but you’re not worthy of knowing that dirty little secret😂

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    • Anonymous says:

      They are comfortable in projecting their ‘eliteness’. Of course, likely by this time these comments have been observed, and they will pretend to conserve for a bit until our short-term awareness is focused on something else.

  15. Anonymous says:

    Solar renewable energy is so prevalent and cheap in many places (other than Cayman), that there are gluts of power, where per kwh energy costs can dip negative during peak hours of the day. Battery banks, like the Tesla Wall, allow those generating more solar than the grid can take, to store and release that power for later, to help level the entire grid. There is nothing in the CUC license agreement that dictates that they must continue to burn a drop of diesel or gas. The CIG’s role is to command CUC to transition. If 30% of the projected future port cargo are containers of Gas for fossil fuel burning at CUC, then one hand of Cabinet doesn’t know what the other is doing. The dummies need to go back to public school science class, or consult with the general public about what the rest of the world is doing to problem solve energy transition. It is impossible to be this dumb accidentally.

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  16. Anonymous says:

    Ah yes, create a ridiculous fee to feed the government’s bottomless money pit, create budgets around the new income and now try to figure out how to replace that revenue stream. anyway you put it the average Joe picks up the tab.

  17. Anonymous says:

    But you gave up on Better Pay Packets for local blue collar workers!!
    ONLY rich and Slaves now!!
    https://www.birminghammail.co.uk/news/cost-of-living/new-uk-minimum-wage-rates-29649215

  18. Anonymous says:

    Maybe allow for no duty on fuel for residential properties only as we can’t guarantee that companies will pass on the savings. Or to make it less complicated to run just allow residents to apply for a rebate on the duty for 12 months, that way you can also filter out airbnb properties etc.

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  19. t says:

    Andre,

    Here’s a question for you – why can’t I install solar, have it power batteries, that then power my house, and have CUC power my batteries when there’s a shortfall in solar energy? Why must I be completely off the grid, meaning solar, batteries, and a generator to supplement the solar shortfall? Or become a part of the CORE program and feed my energy back to CUC at a rate that’s not going to provide an attractive ROI?

    Give homeowners the ability to have a solar strategy that’s supplemented by CUC. It’s better for the planet, provides backup power in DR scenarios, and will ease the financial burden of powering homes.

    39
    • Anonymous says:

      Too true. Because there would be no more power for CUC to sell and that would upset CUC’s Caymanian donor class, that all own shares, and bank those dividends. CUC is licensed to make 30% on the energy they are moving. There is no policy limitation on the amount they have to sell. ie. 30% on zero kwh would be the ideal equation for Caymanian consumers.

    • Anonymous says:

      t, What you sayin?

      Going to mess up my yearly dividend returns with your proposal. 🤡

    • Anonymous says:

      CUC actually has existing grid tie, however it’s a very poor deal. Agree with you that it should be a valid payback.

    • Anonymous says:

      Try the DER programme. It’s exactly what you describe and provides better returns than CORE.

  20. Anonymous says:

    NOW they find out (just ahead of elections) that people are struggling?? Giving away money to a select few begging for help is not an answer.

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    • Anonymous says:

      I don’t find that begging for help has provided an iota of relief. I am on the cusp of not being able to pay our health insurance. My family and me are struggling. My wife and me have worked hard for the past 35 years. My family lives lean with no help in sight. We try to keep our ancient car alive, because God knows even a new/used one is not within our budget, and government has seen to it that we can’t import something affordable.

      What we have to look forward to is living on even less once we “retire”, whatever that means. So, we will continue to work without relief, as long as we are able to. Government has failed us. We did everything we could, saved when we could, lived simply. I imagine we will reach a point where we simply die of lack of resources. Thanks for nothing.

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