⚡ OfReg CEO reveals previous CUC rate hike request was blocked

OfReg CEO, Sonji Myles, has shed light on the recent backlash over the CUC base rate hike this summer, explaining that the utilities regulator had no choice but to approve the annual rate hike as it complied with the conditions of the license. However, he revealed that OfReg had previously blocked a proposal by the power provider that would have imposed an additional 3% to 4% increase on bills for residential customers. The proposal was rejected as it would have seen commercial customers’ rates decrease while residential customers’ rates increased without any clear rationale.

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Myles further clarified that OfReg's role is to verify the data upon which the adjustment is based to ensure the proposed increase is compliant with the license conditions. He also pointed out that the current license conditions, which haven't been updated since 2008, don't allow OfReg to reject a justified adjustment. Myles noted that while OfReg had no choice but to agree to implement the rate adjustment, it did act where it could, blocking CUC's proposal to "rebalance" its consumer class rates. The regulator is now calling for a review and update of the existing license regime to better protect consumers and keep up with progress and innovation in the energy sector.

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Looking ahead, Myles highlighted that improvements to efficiencies from forthcoming upgrades to power generation infrastructure and the Battery Energy Storage System (BESS) should reduce energy costs for consumers over time. He also stressed the need for more regulation of efficiency standards given the current cost of fuel. Myles concluded by stating that the regulator is mandated by law to review and advise the government on any required changes to licensing laws to meet the requirements of a modern energy sector.

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