CUC basis for competition

I have written before on this subject.

Many people point to lower costs of phone calls since Cable & Wireless was deregulated.

While this is possible for any messaging utility such as a phone company, which can send messages wirelessly, a power utility is different.

Power needs to be sent through heavy high voltage wires, transformers, switches and sub stations. Collectively, this is called the power distribution system, or power grid. Clearly, building more than one power grid on Grand Cayman is not practical.

The cost of distributing electricity can be as high as one half the cost of electricity at the customer’s meter. Therefore, whoever wishes to sell power back to CUC needs to pay CUC for the use of its power grid.

How much should this be?

The fairest price would be CUC’s cost of power at its generator terminals. CUC probably already has separate divisions for power generation and power distribution, so it may only be necessary for them to allocate a proportion of its central overhead to each division

Third party electricity suppliers should be welcome to sell power into CUC’s grid at or below this price. Of course, they should also pay whatever costs are necessary to safely connect this power to the grid.

I think this approach is fair to all sides and should therefore be the basis of negotiation.

Gerry Miller

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