The cost of electricity is going up for households and businesses after a Caribbean Utility Company rate increase was approved by the industry regulator.
Based on last year’s power consumption of 1,158 kilowatt hours (kWh) a month for the average residential customer, bills sent out in July will be $50.36 higher.
The increase is made up of $3.27 in CUC energy and facility charges and $1.06 in licence and regulatory fees, as well as an increase of $63.46 to cover a jump in the cost of fuel.
But CUC said the government’s fuel cost relief programme would knock $17.43 off the increase.
Richard Hew, the president and CEO of CUC, said, “We understand that any change to electricity bills can be challenging, particularly during the summer months.
“We are committed to working with the government through its fuel relief programme.”
But he added, “Despite these efforts, rising global fuel costs will see household energy bills increase. That is why we welcome the focus on enduring solutions, including the return of the Cayman Home Energy Efficiency Retrofit programme and acceleration of utility-scale renewable energy projects.”
CUC cited conflict and uncertainty in the Middle East for the increased fuel costs.
“These costs are entirely driven by global market conditions and are passed directly through to customers without any mark-up; CUC does not earn a profit on this line item of the bill,” it said.
Increases ‘carefully considered’
Hew said rates changes were “carefully considered” and needed to ensure that CUC could continue to invest to improve efficiency, reliability and support long-term cost stability for customers.
The company said support is available for householders who struggle with paying bills.
It added, “CUC offers payment plans as well as payment extensions and customers are encouraged to visit www.cuc-cayman.com to learn more about the available options and find a solution that best suits their needs.”
The company said, “CUC remains committed to delivering safe, reliable and affordable electricity while making strategic investments that support the island’s economic resilience and long-term sustainability.”
CUC said it continues to prioritise investments that reduce fuel consumption and improve efficiency.
“In 2025, these investments delivered US$7.9 million in fuel cost savings for Grand Cayman households and businesses, through initiatives such as battery energy storage systems, upgrades to generating units and resiliency projects,” CUC said.
It logged US$1.85 million in fuel cost savings in the first quarter of 2026, the company stated.
CUC said it continues to advocate for utility-scale solar development to support a more sustainable and cost-effective energy mix for Grand Cayman.
“Utility-scale solar will not only reduce fuel costs associated with purchasing fuel, it will also deliver electricity at much reduced cost, with these savings available directly to consumers,” CUC said.
Commercial rates also rising
General and large commercial rates will also go up.
General commercial users will see a $38.45 monthly facilities charge and an energy charge per kWh of $0.1550.
The cost of power for large commercial customers will be $201.64 per customer account in facilities charges and an energy charge per kWh of $0.0448.
Big commercial consumers will also pay a monthly demand charge of $10.74 per kWh and an additional capacity charge of $25.97 per kWh.
The licence and regulatory fee will go up to $0.0076 per kWh for consumption over 1,000 kWh.
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