(CMR) OfReg has deferred a rate increase submission from the Water Authority – Cayman (WAC), stating that WAC's 2020 year’s financial statements supporting the adjustment did not justify the need for an increase.
OfReg said during its monthly meeting on 14 April 2022, the Board of Directors considered the Water Authority – Cayman’s (WAC) rate adjustment submission, which, by law, must be reviewed and agreed upon by OfReg. Based on the Regulator’s findings and recommendations, the Board deferred the rate increase submission pending the review of further information requested from the authority.
The Board reviewed the Water Authority’s rate adjustment submission and found that the 2020 year’s financial statements supporting the adjustment did not justify the need for an increase.
Mr. Peter Gough, interim CEO, OfReg, said, “The responsibility of OfReg is to ensure fair prices for the consumer also means that we must legally and impartially review and agree to any increases requested by operators and licensees. Therefore, we have directed the Water Authority to provide further information to support its submission, including its 2021 financial year statements and forecasted five-year Capital Investment Plan (CIP).”
“As the independent regulator, OfReg takes its remit to ensure fair pricing and protect consumers, extremely seriously. It is the view of the regulator in this case that consumers should not bear an unjustified water rate increase at a time when household budgets are already stretched. We are fully aware of the impact of global fuel prices and the knock-on effects in Cayman on energy costs and the cost of living generally,” he added.
OfReg will make a further announcement on review of the requested information.
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