Overview of Our Operational Framework
CUC operates under three key agreements that govern the generation, transmission, and distribution of electricity across Grand Cayman: the Main Agreement, the Transmission & Distribution (T&D) Licence, and the Generation Licence.
Each licence plays a crucial role in ensuring that CUC delivers reliable, sustainable, high-quality services to our customers.
1. The Main Agreement
The Main Agreement forms the backbone of CUC’s operations, setting the overall framework within which the Company can function. It outlines general responsibilities and the fundamental principles guiding service delivery, ensuring that the Company adhere to strict regulatory standards and meets the expectations of all stakeholders. This agreement also highlights the responsibility of CUC to meet the demands of electricity needs for Grand Cayman. The Company must provide documentation through a certificate of need (CON) to the regulator to highlight any additional generation capacity that will be needed to ensure that Grand Cayman has a sufficient power supply. This license also allows for alternative plans to be proposed to the regulator for renewable energy projects that could be an alternative to traditional firm power generation sources, like diesel. In June 2024, CUC provided the regulator with an alternative CON calling for 100 MW (Megawatts) of utility-scale solar plus storage and 36 MW of firm power.
2. The Transmission & Distribution (T&D) Licence
The T&D Licence specifically governs the transmission and distribution of electricity. It mandates that CUC maintain and upgrade the electrical grid, ensure the reliability and safety of all operations, and invest in new technologies and infrastructure. This licence also sets the parameters for rate-setting, ensuring fair and transparent pricing. Learn more about the T&D Licence.
3. The Generation Licence
The Generation Licence grants the Company the authority to generate electricity for Grand Cayman, with a clear obligation to meet the island’s capacity requirements reliably and efficiently. This non-exclusive licence permits other energy sources — such as rooftop solar and power supplied from the Bodden Town Solar Farm — to contribute to electricity generation.
While the Company is committed to sustainability and integrating renewable energy, the licence also emphasises its primary responsibility to ensure a consistent and sufficient power supply for the island. Learn more about the Generation Licence.
Impact on Our Customers
As a CUC customer, these licences collectively impact you in several important ways:
- Accountability: The licences foster accountability and transparency in CUC’s operations. Regular audits and reviews ensure high performance and compliance standards, giving you confidence in the quality and reliability of our service. This oversight framework provides mechanisms for addressing any concerns or issues, ensuring your voice is heard and your needs are met.
- Reliability: Ensures a reliable and consistent supply of electricity. Stringent regulations and standards mandate that CUC maintain and improve the infrastructure, minimising outages and disruptions.
- Fair Pricing: These licences influence the rates you pay for electricity. It ensures pricing is fair, transparent, and reflective of the actual costs of generating and distributing power, protecting you from unfair pricing practices.
- Sustainability: Emphasises sustainability benefits by promoting renewable energy sources. This helps reduce the environmental impact of energy production and supports the long-term stability and resilience of the power supply. As the Company continues to explore renewable energy technologies, you can expect a shift towards cleaner energy and cost savings.
The Main Agreement, T&D Licence, and Generation Licence are critical components of all operations at CUC. They shape how the Company delivers energy to you and ensure that this is done in a reliable, fair, and sustainable manner. The licences embody CUC’s commitment to serving the community and reflect the Company’s dedication to upholding the highest standards in everything.