(CMR) The Caribbean utility company has sent out an email today to its customers indicating that there was a new base increase of 1.8% effective June 1, 2018 – some 5 weeks ago.
The email message dated June 1st states that the Board of the Utility Regulation and Competition Office (OfReg) approved CUC's application for a base rate increase effective June 1st, 2018 as per the Rate Cap Adjustment Mechanism (RCAM) procedure mandated by CUC's License issued in April 2008.
This increase comes at a time when people are already complaining about an increase in their electricity during the usually hot summer months.
CUC has previously issued a press release to the media but actual clients were not directly informed until today.
This increase impacts the base rate only and not the Fuel Cost Charge or the Licence and Regulatory Fees Charge. CUC said the increase was based on a formula which incorporates data to determine a relevant inflation factor or price level index based on an average of 60% of the change in the Cayman Islands Consumer Price Index (CI CPI) and 40% of the change in the United States of America Consumer Price Index.
President and CEO of CUC Richard Hew said in the release about the rate hike the firm had invested US$52.4 million on modern, efficient and reliable equipment.
“The efficiency of CUC’s operations has enabled CUC to keep any required base rate adjustments below the level of general inflation,” Hew stated. “The company remains focused on increasing the reliability of its service and continues to seek ways to keep costs at a reasonable level which will ultimately benefit our customers,”