Grand Cayman, July 4, 2025
Caribbean Utilities Company, Ltd. (CUC) is pleased to announce an overall annual
reduction in costs for its customers, due to ongoing investment in critical infrastructure.

Delivery of the Cayman Islands’ climate change targets and responding to increasing
demands from population growth requires significant investment. CUC invests over
$100m annually to support a secure and reliable electricity system to the households,
businesses, and communities it serves.

As part of this programme, CUC has installed a 20MW Battery Energy Storage System
and upgraded 4 out of 5 of the selected diesel engines in the last 2 years. The fuel
savings generated by these initiatives outweigh their costs, resulting in lower bills.

For bills issued in July 2025, the average household will see a decrease in their energy
bills of 9% or $33.35 per month when compared to bills issued in July 2024, due to
these investments and the decreasing price of fuel.

Mr. Richard Hew, President and CEO said:
“Our commitment has always been to provide safe, reliable, and cost-effective
service to our customers. The energy charge adjustment enables us to sustain
infrastructure and invest in sustainable solutions, while ensuring a positive impact
on customer bills. Due to our efficiency improvements and fuel cost reductions,
the majority of customers will experience lower overall costs compared to
previous years.”

Delivering a resilient, secure and reliable energy system will require ongoing investment.
These savings will help offset the expenses of critical future projects such as placing
lines underground to improve Grand Cayman’s response to ever-increasing hurricane
threats.

Rate changes explained

In February 2025, the Utility Regulation and Competition Office (“URCO”) authorised a
reduction in license and regulatory fees from $0.0155 to $0.0009 per kWh. On July 2,
2025, in line with CUC’s Transmission and Distribution licence (“T&D”), a rate adjustment
of 4% to the energy charge line item was verified and approved by URCO for electricity
consumption effective June 1, 2025. This is an increase of $0.004 cents per kWh for
residential customers when compared to bills issued for the same month in 2024.

When comparing bills issued in July 2025 to July 2024, the $0.029 per kWh decrease in
fuel costs and the $0.004 per kWh increase in the energy charge, together, result in a
net decrease of $0.025 per kWh for residential customers. The total decrease for the
average residential customer with a monthly consumption of 1,162 kWhs is 9% or $33.35.
Please note fuel rates are adjusted monthly, while energy charge rates are adjusted
annually.

The energy charge adjustment supports the long-term reliability and sustainability of
the utility’s services while ensuring affordability remains a priority. Customers will see a
net decrease in overall costs, thanks to strategic investments that have generated
substantial fuel savings.

Rate Changes for 2025

CUC continues to advocate for utility-scale solar plus storage as the preferred option to
further reduce fuel costs, provide financial relief for the customers of Grand Cayman,
and allow for the progression of the goals of the National Energy Policy.