Cayman cuts electricity consumption

| 05/08/2011

(CNS): Grand Cayman’s power company saw a five percent cut in profits for the second quarter of this year compared to last as a result of customers conserving energy and cutting consumption. CUC incurred the fall despite having an increase in the number of customers during the quarter because high fuel costs saw people reduce the use of air conditions the firm said. Sales were also negatively impacted by low residential rental property occupancy and cooler weather. CUC’s President and CEO Richard Hew also said the economic down turn and the high cost of fuel was making people conserve power a move that was encouraged by the firm. (Full report now linked)

“The economic downturn in the Cayman Islands has negatively impacted energy usage and electricity sales,” he said. “The impact of recent high diesel fuel prices on electricity rates has exacerbated the situation and remains of concern for CUC.  We continue to actively seek viable alternative energy sources to reduce the Island’s dependency on diesel fuel for electricity generation. In the short term we are advising customers to conserve energy and are providing assistance through energy conservation education.”

The fall in consumption was even more apparent as the number of customers at the end of June had gone up by 126 customers compared to June 2010. Despite the increases in overall customer numbers the average monthly kWh customer consumption for the residential and commercial categories combined declined from 1,744 kWh for the first half of 2010 to 1,687 kWh for the first half of 2011.

CUC announced that its net earnings for the quarter were $5.9 million – a decrease of $0.3 million. The firm also stated that it had received approval from the Electricity Regulatory Authority (ERA) in March 2011 to hedge against further increases in the price of fuel and the Company has initiated a hedging program for 40% of its annual fuel requirements.

See full report here

 

Category: Local Business

Comments (22)

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  1. Anonymous says:

    Reliable source of Electricity?  that has anything to do with the governmemnt killing poor people by adding their fees to the fuel charges. It has anything todo with CUC averaging/  charging you with their prices.  It we had the second electricity company our CUC bills would be more in line with what it has to be.

    • Anonymous says:

      I am not sure what that last sentence means, but what you need to understand is that having a second electricity company will not necessarily lead to lower prices. This is not telecom. This is a capital intensive industry and unless a new technology is found whereby we can produce reliable power from non-fossil sources prices will continue to be regardless of whether there are 10 utility companies.  

  2. Anonymous says:

    I am not saying the fee that CUC change for electricity should not be lower but now come on people, we have a very reliable source of electricity on these islands.  Black outs are at a minimal and compared to any caribbean island and that of the world our electricity service is amongst the most reliable if not the be best.  You get what you pay for good service = good price.

  3. Anonymous says:

    cayman sold its soul to cuc long time ago….. you have made your bed..now lie in it……

  4. Anonymous says:

    BOOHOO they had a decrease of $0.3 million. This company should be ashamed of how it rapes the people of this island. This Government should be ashamed that they allow it. People trying to keep their roof over their head, trying to meet their bills and BOOHOO CUC never quite made 5.9million. how about you take all those profits and buy new equipment that is more efficient and safer. How about you give back instead of sucking this island dry. SHAME ON THE WHOLE LOT OF YOU. I am sick off it. Bloody heat gonna kill us cause of your glutinous profits

     

  5. Kirkey says:

    They cost me so much dollars for elect. I sick of spend so much for the power. Can't keep air condition on alltime and my room get too hot for good comforts.

    We needs cheap other way for power in Cayman. I say to burn the Mount trash but many think that bad idea.

    CUC is like bandit! I think they need to chop price.

  6. Anonymous says:

    Really, really ?????  "Grand Cayman’s power company saw a five percent cut in profits" while every household saw an increase in their bill resulting in many holes being left in their pockets!

     

    • Anonymous says:

      No doubt that is correct. What you and others refuse to understand is that CUC does not benefit when there is an increase in the price of diesel. It is fuel costs that is increasing your bill. Evidently they are having the same problem in Jamaica even though they have an oil refinery.  

  7. Mark Eb says:

    I for one don't give a dam, I'm fed up with CUC screwing me each month for electricity!

  8. Anonymous says:

    Consumption down, income down, hence the significant increase in fuel costs last month me thinks. Surely CUC would not be trying to increse their profit by putting up prices????

  9. Anonymous says:

    "The firm also stated that it had received approval from the Electricity Regulatory Authority (ERA) in March 2011 to hedge against further increases in the price of fuel and the Company has initiated a hedging program for 40% of its annual fuel requirements."

    What does this mean in "Layman's" terms.

    • Anonymous says:

      In Layman's terms it means they are going to pay more for 40% of their fuel which they will pass on to us. It's just a gamble which says they are willing to pay a bit more because they think the price of oil will rise, instead of doing nothing and perhaps having to pay a lot more.

      Oil has been trading around $100 per barrel. As an example they may "hedge" and purchase future supplies of oil at say $125 per barrel. If the price of oil does not go up to $125 per barrel then we still pay the fuel factor associated with oil at $125. If oil does go to $150 per barrel or higher, then we only pay the fuel factor on oil at $125 instead of the $150 or whatever it may be trading at.

  10. Anonymous says:

    Electricity costs too much, its now a luxury item. I used to cook on the grill outside maybe once a week as a treat to the children, now we are doing it about 4 times a week and eating outside too so as not burn the current. Its back to basics in our household.

  11. C-man 2 de Bone says:

    CUC consumers need to send them a Real Message and have OUR own "BLACKOUT" !!! bettcha their "Profits" will show them how we the Consumers can also control them.     

    • Anonymous says:

      Great idea…. lets organise it. If we publicise it enough I reckon lots of people would join. Lets send a message LOUD & Clear

  12. Anonymous says:

    Oh yeah, I've cut wayyy down on consumption but strangely enough my CUC bill has increased every month, in fact it has increased by over $300 over the last month and I have supposedly 'cut down' my useage.  This is the price to pay for living in paradise??  I have no other home, so I'm sweatin it out and hoping for some cooler temps soon.  In the meantime, I really don't want to hear any complaints from CUC about how they have experienced a "drop in net quarterly earnings" (in the Compass today)!  No sympathy from me for CUC!

  13. Jungle Juice says:

    Reduced consumption more likely to be from the shrinking population. But CUC is obviously not suffering by adding the loss of buisness to everyone elses bills. SMFH! 

  14. Anonymous says:

    I say bring on the oil refinery!!! I used to think the same way about the smell of these things but I would rather smell it than continue to pay these high prices..

    • R.U. Kiddin says:

      You are naive if you think that would make any difference in your bill.  Your electric bill would continue to go up….. just like it always has.  The only difference would be more pollution and another eyesore.

    • Anonymous says:

      Not helping Jamaica much, is it?

  15. Anonymous says:

    What a shock! (no pun intended). I guess government will be making less on fuel taxes as people use less power. Try reducing the tax and watch consumption and government revenue rise.

     

  16. Anonymous says:

    When prices increase drastically for products that we can't escape, like food, phone, petrol and electricity, there comes a point when anger takes over, and we refuse to be gouged anymore.

     

    It's amazing how quickly one becomes used to cool showers and fans, instead of using the ac, and how easy it is to flick  lights off you don't need. Price comparisons at the supermarkets reveal astonishing discrepancies, sometimes by a factor of ten. You can buy a year's supply of peppercorns for the price a bottle one tenth the size. Flourescent lights vary by 300%.

     

    If you've roamed with your phone, and you forgot to disable the messaging facility and  forgot also that to retrieve a message costs over $2, while at the same time you kept each call below  one minute, you will know the anger I'm referring to when you received your bill for hundreds of dollars, for what at home would have cost  about $25.

     

    These experiences result in consumers educating themselves and developing strategies to reduce spending. This blows back in the faces of those companies who refuse to change their pricing policies.

     

    We can't really escape high fuel prices, but the latest generation of high performance diesel engines produce cars with an astonishing  60-70 mpg. But can you buy the ultra-low sulphur diesel they require in Cayman? No. Will CUC bring it in, to get the ball rolling? Of course not.