Understanding the breakdown of your electricity bill is not just a matter of financial literacy, but a key to managing your expenses effectively. At Caribbean Utilities Company, Ltd. (CUC), we believe that this understanding is essential for our customers to receive the best in electricity service.
Knowing the components of your bill can help you make informed decisions about energy usage and budgeting in Grand Cayman.
What are the Current Charges/Services and What Do They Mean?
Your CUC energy bill comprises several charges, each serving a specific purpose. Understanding these charges, whether you are a residential customer or large commercial customer, can help you better manage your energy use and anticipate the forecasts for your monthly expenses.
Facilities Charge
The Facilities Charge is a fixed monthly fee that covers the average cost of metered service to the customer class. This is inclusive of administrative fees. This cost can be adjusted on an annual basis based on CUC’s licence.
Energy Charge kWh
The Energy Charge is based on the amount of electricity you consume, measured in kilowatt-hours (kWh). This charge covers the cost of generation, transmission and distribution infrastructure and operation to deliver electricity to your location. CUC invests over $100 million each year for infrastructure that delivers a reliability rate of 99.98%. The Company is also committed to delivering projects that will allow for cost savings for the customers of Grand Cayman.
Licence and Regulatory Fees kWh
Licence and Regulatory Fees – the rate for regulatory fees are determined by the Utility Regulation and Competition Office (“URCO”) and the regulatory fees are paid directly to the regulator.The license fee is paid directly to the Cayman Islands Government.These fees are typically a small percentage of your total bill and are calculated based on your energy consumption in excess of 1,000 kWh. You are only charged this fee if you go over 1,000 kWh.
Fuel Cost
The Fuel Cost component reflects the actual cost of the fuel required to generate the electricity you consume, two months lagging. If fuel is consumed in May, the calculation is submitted to the regulator in June and the rate is applied in July. Since fuel prices can fluctuate, this charge is adjusted monthly to align with current market conditions. We strive to procure fuel at competitive prices to keep this cost as low as possible for our customers and this is the largest contributor to your bill.The fuel cost is a passed through cost to customers and is not marked up by CUC.
Government Fuel Duty
The Government Fuel Duty is the charge per kilowatt hour of consumption providing for duties paid to the government for fuel and lube oil in generation, two months lagging.
Renewable Energy kWh
The Renewable Energy charge is the per kWh of consumption providing for the direct cost of energy purchased from renewable sources which currently include the Bodden Town solar farm and rooftop solar. This charge is always a two-month lag. CUC does not make money on this charge as it is a pass through cost to customers.
What impacts your bill?
At CUC, we are committed to transparency. We want you to have all the information you need to understand your electricity bill fully. By breaking down each component, we aim to clarify where your money goes and how it supports the reliable delivery of electricity to your home or business. Follow our social media pages to get more detailed information on your bill!
For more information on Billing or to contact our Customer Service team, visit www.cuc-cayman.com.
