💡 Grand Cayman's power provider starts 2024 with a significant earnings boost

Grand Cayman's power provider, CUC, has reported a profitable start to 2024, with net earnings rising by $1 million to over $6.2 million in the first quarter. This represents an 18% increase compared to the same period in 2023. Factors contributing to this profit growth include a 6% increase in sales, a 2% growth in customers, and an increase in the base rate. However, this growth comes amidst rising light bills, causing struggles for customers across the island. Despite this, shareholders saw a 2-cent increase in their dividends, rising from 14 cents to 16 cents. 📊

The increase in sales to larger commercial customers was driven by economic growth, while the growth in sales to residential customers was mainly due to increased average consumption. The average temperature for the first three months of 2024 was slightly above that of 2023, leading to higher power usage. Although the average fuel factor was down slightly over the first quarter, this was offset for consumers by the base rate increase on bills of 3.8%, which began in August last year. CUC continues to invest in the grid, adapting generators to burn gas instead of diesel, and working on the utility-scale Battery Energy Storage System project (BESS). Once approved, this facility will allow for further renewable energy on the grid and potential savings of up to $5 million per year in fuel costs. 🌍

CUC President and CEO Richard Hew emphasized the company's focus on capital investment and infrastructure projects, particularly those with a sustainability focus. He stated that the company is making investments to increase fuel efficiency and reduce reliance on diesel, while continuing to deliver reliable and cost-effective energy. ⚡