News

OfReg, the regulator of the Energy & Utilities sector in the Cayman Islands, approves the  deferral of the Caribbean Utilities Company base rate adjustment that normally comes into effect annually on June 1st. According to an official release, the adjustment will be deferred for a 7-month period and will come into effect on January 1, 2021.

OfReg says in accordance with its Transmission & Distribution (T&D) Licence issued in April 2008, CUC submitted a request to OfReg for a base rate adjustment of 6.6% effective June 1, 2020 and while ofReg acknowledges June 1, 2020 rate adjustment of 6.6% is allowed under the Rate Cap Adjustment Mechanism (RCAM) contained in the T&D licence - consideration was given to assist customers experiencing financial hardships from the economic effects of COVID-19. For these reasons OfReg has agreed with CUC to a deferral of the increase in rates until January 2021.

The sstatements adds, "OfReg does not take lightly its decision to authorise CUC to raise its base rates but we are bound by law and CUC's T&D Licence to issue a decision now. The impact will be softened by deferring the increase until January 2021 and customers will see a marginal increase only in the energy portion of their electricity bill come February 2021. The average residential consumer who consumes 1000 kWh/month should expect to see an average increase of CI$2.10 on their monthly bills effective January 2021 as a result of the deferral. This may vary slightly depending on any reduction in the base rate increase recovery through the end of the year."