PPM: Government must do more to help with power, water charges

Leader of the Opposition Joey Hew has called on government to do more to help Cayman families and businesses after an increase in the cost of power.

Hew, leader of the People’s Progressive Movement, challenged the ruling National Coalition For Caymanians to do more to help those who would struggle with increased electricity charges from the Caribbean Utilities Company.

He said, “It is a fair and reasonable question to ask whether the government urged Caribbean Utilities Company to delay implementing this increase until after the summer months, where many families are already dealing with higher household expenses and preparing children for the new school year.

“If those discussions took place, the public deserves to know. If they did not, the government should explain why.”

In April, the government announced a $9-million ‘relief package’ to protect Cayman families from rising gas prices at the pumps and on electricity bills. The plans included a total duty exemption on imported gasoline, diesel and propane.

However, Hew insisted that government could not continue with Band-Aid measures and a “clear strategy to protect consumers and strengthen the country’s energy future” was needed.

He said, “Families and businesses cannot continue to absorb one increase after another without seeing meaningful action.

“The reality is that many are now facing higher electricity bills at the same time as increased water rates, creating an added financial strain for households already under pressure.

“Caymanians deserve more than explanations after the fact, they deserve a government that anticipates these challenges, acts early to lessen their impact and pursues long-term policies that deliver more affordable and reliable electricity.”

Private member’s motion

Hew highlighted that PPM MP Roy McTaggart had introduced a private member’s motion in Parliament at the end of April that asked government to waive import duty on fuel when global prices spiked.

He said, “On the day of the parliamentary debate, the government announced a reduction in import duty on fuel, a step that reflected the very objective Mr. McTaggart had been advocating.”

But Rolston Anglin, the finance minister, denied McTaggart’s motion had spurred the government into action.

He said in Parliament he had written to senior civil servants and Nickolas DaCosta, the district administration minister, on 12 March to set up a discussion on what could be done to cut the cost of fuel in light of tension in the Middle East and Venezuela and rising oil costs.

Hew said the PPM had welcomed the relief move, but that the latest increase in electricity charges, alongside a hike in water charges by the Water Authority-Cayman Islands proved that “one measure alone is not enough”.

He added, “Government cannot afford to be reactive. It must continue to examine every available policy option to protect Caymanian families and businesses from the effects of volatile global fuel prices and rising utility costs.”

CUC said that, 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.

Power, water charge increases

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 total.

General and large commercial rates will also go up.

The Water Authority in June announced the base price for the first 12 cubic metres of water used in a month – about 2,640 imperial gallons or 3,200 US gallons – would go up 13 cents from $4.34 per cubic metre to $4.47 this month.

The price for water consumption over 12 cubic metres will go up from $5.57 to $5.74 a cubic metre – a 17-cent increase.

Sewerage rates, based on assessed Sewerage Fixture Units, also went up, from $1.672 to $1.722 per unit.

The disposal charges levied on sewage trucks also increased from $17.018 to $17.529 per 832.67 imperial gallons (1,000 US gallons).

The finance ministry has been asked for comment.