Caribbean Utilities Company has announced that its fuel adjustment for the month of September had reached an all-time high of 8.7 cents per kilowatt-hour, which is 81 per cent higher than September 2004.
In June, CUC issued an advisory to customers indicating they would see an increase in the fuel factor through August of this year.
However, instead of decreasing, world oil fuel prices have increased even more.
CUC said fuel costs fluctuate according to market conditions.
‘World fuel prices… are driven by supply and demand and CUC’s fuel adjustment mechanism, which is similar to the process used by electric utilities all over the world, passes on fluctuations in the cost of fuel to customers,’ the company said.
In accordance with its license here, CUC applies fuel adjustments to customers’ bills two months after the fuel is paid for.
The fuel factor on the September bill therefore reflects what CUC paid for fuel in July.
CUC estimated the fuel factor will fall slightly to 8.5 cents per kilowatt-hour on the October bills.
‘The outlook for fuel prices is dependent upon the actions of the Organization of the Petroleum Exporting Countries and the instability of the market,’ CUC stated.
Any decrease in the price of fuel will result in a corresponding decrease in CUC’s Fuel Adjustment, the company stated.
To combat the rising fuel factors, CUC is once again encouraging consumers to increase their energy conservation efforts
CUC’s Energy Smart programme promotes energy conservation and provides tips on how to reduce electrical consumption.
Energy saving tips are available at the Company’s Energy Depot at www.cuc-cayman.com. Customers can also obtain a copy of an energy conservation booklet from CUC’s Customer Service Departments on North Sound Road or at West Shore Centre.
Customers who want assistance estimating what the cost will be on their next bills taking into consideration the higher fuel factor should contact a customer service representative at 949-4300 or email [email protected].
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