Caribbean Utilities Company says its residential customers should expect to see a 9% decrease in their July energy bills compared to the same month last year.
Projecting an overall annual reduction in costs for its customers, CUC attributed the decline, estimated to average $33.35 per household per month, to investment in infrastructure, such as the 20-megawatt battery energy storage system, and decreasing fuel costs.
While the utility provider has increased its monthly facilities charge and its energy charge per kilowatt hour, it has decreased its fuel charge per kWh, resulting in the estimated decline in energy bills, CUC noted in a press release.
Fuel rates are adjusted monthly, while energy charge rates are adjusted annually.
In February, the Utility Regulation and Competition Office approved a reduction in licence and regulatory fees from $0.0155 to $0.0009 per kWh, CUC said. Then on 2 July, a 4% rate increase for the energy charge was approved for consumption as of 1 June. This is the equivalent of an increase of $0.004 cents per kWh over the 2024 rate for residential customers, the provider said.
Combined with the $0.029 per kWh decrease in fuel costs, CUC said the adjustments would result in a net decrease of $0.025 per kWh for residential customers.
“Our commitment has always been to provide safe, reliable, and cost-effective service to our customers,” CUC president and CEO Richard Hew said in the press release.
“The energy charge adjustment enables us to sustain infrastructure and invest in sustainable solutions, while ensuring a positive impact on customer bills. Due to our efficiency improvements and fuel cost reductions, the majority of customers will experience lower overall costs compared to previous years.”
The company said “significant investment” is required to meet climate change targets and respond to increasing demand. To do this, CUC said it invests $100 million annually. This has included installation of the battery energy storage project and upgrades to four of five selected diesel engines in the past two years.
“The fuel savings generated by these initiatives outweigh their costs, resulting in lower bills,” CUC said.
The company added that it “continues to advocate for utility-scale solar plus storage as the preferred option to further reduce fuel costs, provide financial relief for the customers of Grand Cayman, and allow for the progression of the goals of the National Energy Policy”.
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