The Utility Regulation and Competition Office has approved a base rate adjustment for Caribbean Utilities Company in accordance with the Rate Cap Adjustment Mechanism contained in the company’s Transmission and Distribution License.
Customers will see an increase in the energy charge component of their bills effective June 1.
The base rate increase will be 1.6 percent and will result in a total monthly bill increase of approximately $1.83 for the average residential customer.
The rate adjustment is based on a formula which incorporates inflation, which consists of a weighted average of 60 percent of the change in Cayman’s Consumer Price Index and 40 percent of the change in the U.S.’s Consumer Price Index.
“The efficiency of CUC’s operations has enabled CUC to keep base rate increases below the level of general inflation,” said Richard Hew, the president and chief executive officer of the Caribbean Utilities Company, in a statement.
“The Company invested US$46.5 million in 2016 on modern, efficient and reliable equipment which enabled CUC to post its highest ever fuel efficiency and, combined with lower world fuel prices, we were able to pass on the savings of US $25.6 million to consumers in 2016 when compared to 2015.”
Louis Boucher, the acting executive director of energy and utilities for OfReg, noted that the increase in the base rates would not significantly impact the bills of most consumers.
Mr. Boucher also said that consumers should continue to see a positive impact of decreased fuel costs and government duty.
The Rate Cap Adjustment Mechanism was designed to push the utility company to improve its efficiency.