⚡ CUC announces 3.2% increase in electricity base rate

The Utility Regulation and Competition Office (OfReg) has approved a 3.2% annual base rate increase on Cayman Utility Company (CUC) bills, effective from 1 June. This comes as residents of the Cayman Islands grapple with escalating living costs. Despite this, CUC reported an 18% increase in earnings in the first quarter of the year. The company's rates are reviewed annually, taking inflation indexes into account. Officials anticipate a "marginal increase" in July bills. The average residential customer's monthly facilities and energy charge will rise by CI$4.88 based on a consumption level of 1,153 kilowatt hours, the average monthly household consumption in 2023. ⚡

According to CUC, the energy charge increase will be partially offset by fuel efficiency savings from recent upgrades to two of its large generating units. The company plans to upgrade three more units by 2025, which will result in further fuel efficiency savings. The implementation of the 20 megawatts Battery Energy Storage System (BESS) will also contribute to future fuel savings. While CUC did not specify when or by how much, it stated that these savings will offset most of the energy charge adjustments. Additionally, customers can expect to benefit from increased solar usage and a decrease in fuel factor from August. However, CUC cautioned customers to monitor their electricity usage, particularly during the summer months when air conditioning demand increases. Energy-saving tips are available on the CUC website. ⚡