⚡ OfReg denies responsibility for potential power outages on Grand Cayman

The Utility Regulation and Competition Office (OfReg) has dismissed claims that it is responsible for possible power outages on Grand Cayman this summer, due to anticipated peak demand on the grid. The Caribbean Utilities Company (CUC) has warned of a looming power crisis, blaming OfReg for delays in initiating a bid for utility-scale solar generation. However, OfReg countered these claims, stating that CUC has failed to meet its licensing obligations as a monopoly provider and has not requested a Certificate of Need (CON) to acquire a new generator for continuous power. ⚙️

OfReg also highlighted the difference between "firm" power, provided by CUC’s diesel generators, and "non-firm" renewable generation, stating that current solar and wind energy technology cannot provide 24/7 power. The regulator criticized CUC for not anticipating the need for more generators, given the ongoing construction boom on the island. OfReg also dismissed CUC's claims that it rejected an uncompetitive bid in 2019 and criticized the company's decision to start load shedding when reserves dropped towards 35% of the peak demand. 🌞

Furthermore, OfReg accused CUC of failing to accurately calculate the projected load growth and not complying with the terms of its distribution license, which requires the company to request permission to increase its generation three years before additional capacity is needed. The regulator is now considering what action, if any, is appropriate for CUC's apparent failure to perform according to their license. ⚖️