CUC warn of “unprecedented” fuel hikes

Electricity bills are set to rise in the coming months as the impact of the war in the Ukraine on fuel prices combines with higher usage of electricity due to temperature increases in the summer. Cayman’s electricity-provider says that customers ought to prepare for higher electricity bills beginning with the electricity consumed in May, billed in June.

“There is typically a two-month delay between market prices and the impact on your electricity bill. As such, you will not see an immediate fuel increase on your March or April bills (issued in April and May, respectively). We will continue to keep you updated on the fuel costs and any increases affected by the worldwide price increases,” they advised.

Fuel prices did not only affect the cost of gas at the pumps, there is an impact on every aspect of life, including shipping costs, airfare prices and electricity costs. The ongoing war in Ukraine is affecting the price of fuel around the world, CUC said. As a result, electricity bills would see increases soon.

To help brace customers for the surge in costs, the CUC Customer Service team would be working on communicating costs and offer tips on how to save on electricity. Even so, CUC say there could be “significant” bill increases to come for Cayman consumers.

March and April bills will reflect a Fuel Charge of approximately CI 0.14 cents per kWh, CUC advised, and urged customers to assess their property to identify areas where customers could make adjustments that would lead to reduced energy usage.

Typical high consumers are air conditioning units, comprising typically 60% of the electrical cost in Cayman households. An inefficient air conditioning unit can cost you significant amounts of money, they said. Deep freezers and gaming computers were other high electricity consumers. CUC advised to limit electricity consumption and avoid waste by monitoring usage and using energy wisely. This, of course, is easier said than done when temperatures rise and the reliance upon A/C to cool homes and businesses is even greater in the summer time.

CUC said it had always been committed to helping customers to reduce fuel costs and cited no added markup on fuel cost, which was a direct pass through to the customer which CUC did not profit from, as well as CUC’s proposed Fuel Price Volatility Management Programme, which was approved by the ERA (now OfReg) In March 2011, as examples of this.

“The objective of the programme is to reduce the impact of volatility in the Fuel Cost Charge rate paid by the company’s customers for the fuel that the company must purchase in order to provide electricity. The programme utilises call options to promote transparency in pricing and to create a ceiling price for fuel costs at pre-determined contract premiums,” they stated.