Bills for electricity in the Cayman Islands will go up beginning next month.
A cost recovery surcharge equivalent to a 4.6 per cent increase in billing is to be added to customers’ bills after talks between the government and CUC, Legislative Assembly was told yesterday.
But Minister Arden McLean told the House that was less than half of the 9.5 per cent that might otherwise have been added as the company tried to recover its losses after Hurricane Ivan.
In a statement to the House, Mr. McLean said the CRS would start in the August billings and was expected to appear on bills for about three years.
But during the three year period CUC had agreed that there would be a freeze on basic billing rates, he said.
After claims to its insurers CUC had uninsured losses of $11.8 million but after further talks, the company had agreed to absorb a further $500,000 of those, said Mr. McLean.
‘In total, CUC has agreed to absorb some $3,044,000 of additional costs associated with Hurricane Ivan, which will not be passed on to customers,’ Mr. McLean told the House.
‘Since CUC is a utility service whose rates and tariffs are regulated by the government it falls upon the state to assist in arriving at a fair and reasonable settlement in the interest of all concerned,’ he said.