CUC to get competition

The Electricity Regulatory Authority has selected DECCO
Ltd., a subsidiary of Dart Management Ltd., to develop and operate 36 MegaWatts
of power generation capacity on Grand Cayman.

The decision, which was formally announced on Monday, will
mean that for the first time on Grand Cayman, Caribbean Utilities Company will
have competition in the generation of electricity for resale.

In a press release issued Monday afternoon, DECCO Ltd. acknowledged
its bid in response to a request for proposal issued on 23 March, 2012, had
been selected in the first phase of a two-phase process.

“We now move into the second phase – negotiating with CUC to
realise a power purchase agreement.”

The bid submitted by DECCO reflected a partnership between
it and Finland-based Wärtsilä, a global power plant firm.

“Wärtsilä is one of the leading global providers of flexible
power plants for utilities, [independent power producers], municipalities and
industry, operating throughout the Caribbean, Latin America, Asia Pacific,
Europe and Africa,” DECCO’s press release stated. “The power plants are
designed for efficient, economical and environmentally sound power production
coupled with uncompromising reliability.”

CUC also issued a press release on the development on
Monday, with President and CEO Richard Hew confirming that CUC, in accordance
with the terms of its Transmission and Distribution Licence, would now enter
into negotiations leading to a long-term power purchase agreement with DECCO
Ltd.

“We look forward to reviewing the winning bid and entering
into discussions with DECCO Ltd. leading to a power purchase agreement,” Mr.
Hew said.  “CUC remains committed to
offering a safe, reliable and efficient service at least cost to our
customers.”

 

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14 COMMENTS

  1. CUC currently has approximately 150 MW capacity, so 36 additional doesn’t equal 36,000 homes. And I’m guessing DECCO will pay for it since they won the bid to develop the plants. In any case this additional capacity is primarily to replace retirement of current capacity.

    For the record CUC also submitted bids but was not selected.

    Per CUC 3Q 2012 report:

    The Electricity Regulatory Authority (ERA) solicited a Request for Proposals (RFP) for
    additional generation capacity from six Qualified Bidders (including CUC). CUC submitted its
    bid on July 16, 2012. This competitive solicitation process is in response to the certificate of
    need issued by the Company in November 2011, driven primarily by the upcoming retirements
    of some of the Company’s generating units.

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  2. Anything is better then what CUC is now offering, I will be first in line at the new Dart electric company..

    Competition benefits the consumer more than anyone. I for one am glad that I will soon have a choice..

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  3. Competition is healthy and the only winner will be the consumer. Although 36 Megawatts sounds like Dart will be the only one using darts electricity. By the way-whatever happened to the solar power that CUC was suppose to have. CUC asked for tenders to be submitted last year. No reason why an island the size of Cayman could be running efficiently on cheap solar power

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  4. Anti Trust laws do more than promote competition. The Cayman Islands needs to put in place a comprehensive Anti Trust Law. Now! Otherwise the saint Dart will show his true colours in all it’s magnificence and the will be NO recourse.

    All you people who will bash me for call the name of Dart in Vain, just wait and see you will rue the day you ever heard that name. Just ask a couple of the other countries he has done business with and is now squeezing like a used up accordion.

    ANTI TRUST LAWS FOR CAYMAN TODAY!!!

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  5. Cayman residents are so naive..just because Deco is building a generating plant..The power will still have to be bought from Deco by CUC and distributed by CUC…and for a markup because don’t think CUC will do this free of cost because the still have a monopoly on the distribution. So all you saying you will be first in line to switch to dart…use your brains and hope and pray the multi billionaire will be building the multi million dollar plant without hopes to recoup that capital cost AND produce power cheaper than CUC,..because if he does not…who do you think will paying for it?…you guessed it…YOU!!

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  6. WELL, YOU CAN FEEL THE LOVE IN THE AIR BUT KNOWING THAT THERE WILL BE A COMPETITION IT BRING BACK MEMORIES WHEN WE ONLY HAD A CELL-PHONE PROVIDER PAYING RATES 2.50 PER MINUTE. IT’S GREAT TO KNOW THAT AT LEAST WE WILL GET A DEASENT BILLING. I WENT AWAY FOR 3 WEEKS AND LEFT ALL MY BREACKERS OFF AND MY BILL CAME THE SAME, I WENT TO FILE A COMPLAIN AND THEIR REPLY WAS THAT SOMEONE WAS STAYING AT MY PLACE WHEN I’M 100% SURE THAT WAS NOT THE CASE, BOTTOM LINE I HAD TO PAY THE BILL. I HEARD SO MANY STORIES SIMILAR TO MINE AND IS VERY UPSETTING KNOWING THAT THERE’S NOT AN GOVERNMENT OFFICIAL TO DEAL WITH THIS MATTERS. IS NOT NORMAL THAT THE AVERAGE HOME IN CAYMAN IS PAYING 800 A MONTH AND WAIT SUMMER SEASON IS NOT HERE YET, EVERYBODY FEEL ABUSED AND VERY UN-HAPPY, WE UNDERSTAD GAS PRICES ARE UP AND IS BAD, BUT NOT THAT BAD FOR ABUSE TO TAKE PLACE!

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  7. Excuse me?

    The last words is a what you call a WHITE LIE! :

    CUC remains committed to offering a safe, reliable and efficient service at LEAST COST to our customers.

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  8. But this still fails to move the islands any closer to the introduction of renewable energy sources such as solar or wind power.

    However, Wrtsil do produce some very advanced and very clean multi-fuel and natural gas powered generators. Hopefully, DECCO might at least start the move away from the traditional use of diesel fuel.

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  9. Ok Lets get it straight,

    Decco won the bid to produce the power but it can only sell it to CUC. Dart does not have a distribution license. CUC will charge their same rate. No one can buy power from anyone but CUC. Period.

    What is left to be seen is if Dart will receive a preferred rate for what electricity they consume because as you can imagine they consume alot with Camana Bay and the future Hotel and other properties.

    I am willing to bet though that they will losing money on generation to beat CUC’s bid especially by using high grade Ultra Low Sulphur Diesel with less than 15ppm of sulphur or clean diesel (CUC uses cheaper Offroad diesel) with around 5000ppm of sulphur but Dart will gain because of a preferred electricity rate. As long as they are gaining at the end of it all, its worth it for them. And worth it for us too with less pollution caused by burning offroad grade diesel.

    All I want is some of that diesel and V12 AUDI TDI.

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  10. Wind and solar power are unreliable and costly. Therefore you require 100% redundancy with a fossil fuel burning power plant as a back-up. Overall capital and operations cost is higher and high-cycling the machines is very tough duty on the equipment. For base load operations a mini-nuke is ideal and use diesels for peak shaving. It’s a classic no-brainer. Power Plant Engineering 101.

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