Island Energy customers on Cayman Brac and Little Cayman will see a jump in bills in the New Year as the utility company increases its base rate by 5.6%.
Permission for the increase has been granted by the Utility Regulation and Competition Office (OfReg) and will be effective from 1 January 2025.
Post-paid customers will see the increase reflected on their January 2025 invoices, which are issued in late January and due in February, while prepaid customers will have the new rate applied to transactions beginning on 2 January 2025.
$4.5 million investment
Since acquiring the assets of the Cayman Brac Power and Light Company in 2022, Island Energy Ltd., a Dart subsidiary, has invested over $4.5 million to improve the safety and reliability of electricity services across the Sister Islands.
As the Compass reported in August, the investment has come at a cost for consumers, hence the planned rise which could add up to $20 on a $400 monthly bill.
These investments include new-generation equipment, upgraded transmission networks, new service vehicles, facility renovations, and enhanced training and safety equipment.
“These upgrades enhance the resilience of our network and equip our crews with the necessary tools required to ensure the highest levels of service delivery to our valued customers, which should also result in fewer and shorter unplanned outages,” said Jonathan Tibbetts, Island Energy general manager.
He said that while those improvements were essential to maintaining the safety and reliability of the electricity supply in the Sister Islands, they require appropriate funding. Base rates in Cayman Brac and Little Cayman have remained unchanged for over 20 years. Fluctuations in consumer bills over that time have been solely the result of the fuel surcharge component, Tibbetts explained.
In an open letter to customers, Tibbetts said, “We know that a notice of this nature is not one that you look forward to receiving, nor is there any perfect time to make such an announcement but we are committed to transparent and open communication with our valued customers.”
New solar farms are also planned on both Cayman Brac and Little Cayman as the Sister Islands take their first steps towards a renewable energy future, as reported by the Compass in August.
A competitive bid process is hoped to begin in 2025 with Island Energy aiming to generate more than half of the islands’ power needs from solar.
Editor’s Note: The Cayman Compass is a subsidiary of Dart Media and Entertainment.
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