Customers across Grand Cayman continue to pay less for electricity. That’s because they are enjoying the benefit of lower fuel costs resulting from reduced global fuel prices, a reduction in Government duties on fuel and improved efficiencies from CUC’s new 40 MW power plant.

The average price per Imperial Gallon of fuel decreased 4% to $2.07 at the end of December 2016 when compared to $2.15 for the same period in 2015. Fuel costs are passed through to customers by CUC on a two-month lag basis with no mark-up.

For the three months ended December 2016 (“Fourth Quarter 2016”), the reduced fuel costs translated to an average Fuel Cost Charge rate of $0.11 per kilowatt hour (kWh) for residential consumers, compared to an average Fuel Cost Charge rate of $0.15 per kWh for the same period in 2015.

This means that the residential consumer who consistently uses 1,000 kWh per month would have seen their monthly bills decline by approximately $34.00 during the Fourth Quarter 2016 when compared with the same period in 2015.

CUC’s President and CEO, Mr. Richard Hew says, “We are pleased that customers are benefitting from the current lower fuel prices. However, we also continue to push towards getting alternative energy sources connected to the grid and with improving our overall plant fuel efficiency. This includes the 5 MW Solar Project in Bodden Town which is on schedule to start operations by the middle of this year, the ongoing Customer Owned Renewable Energy (“CORE”) programme, which is nearing 4 megawatts of connected load and the installation of our 40 MW diesel plant in June last year which comprises of the most fuel efficient diesel generators in the Caribbean. ”

The chart below shows the trending of CUC’s residential rates over the past three years.

Residential retail rates in December 2016 were 32% lower than the rates in December 2014.

The chart below shows the average residential customer’s bill during the December 2016 billing period, of which 82% had monthly bills which were under $500.00 and 32% had bills of less than $200.00.

The chart below shows the average residential customer’s bill during the December 2016 billing period, of which 82% had monthly bills which were under $500.00 and 32% had bills of less than $200.00.

On a monthly basis, CUC submits information regarding its fuel costs and its calculation of the per kWh rate used to recover those fuel costs to the Utility Regulation and Competition Office (“OfReg”) to be reviewed in advance of billing customers. The fuel costs are recovered from electricity consumers two months in arrears in order to allow for a thorough review process by the OfReg. For example, fuel costs incurred in January are billed to consumers in March.

Our customers expect a reliable electricity service and good value for money and we believe CUC provides that. We continue to encourage customers to take steps to reduce their energy usage which will result in lower electricity bills.