Base Rate Update & FAQs

Base Rate Update & FAQs

Effective 21 April 2026, electricity base rates will increase by 5.6% 
This adjustment will help us maintain network efficiency while continuing to invest in operational infrastructure, technology upgrades, and long term sustainable energy solutions.
To help you understand these updates and how they may affect you, we’ve provided answers to frequently asked questions below.

 

What are electricity base rates?

The electricity base rate is different from the fuel charge. It is a fixed cost that covers infrastructure, maintenance, operational expenses, safety systems, and ongoing improvements to the electricity network.

Fuel costs (currently diesel) are required to generate electricity and can vary based on international market prices and supplier charges. Island Energy does not profit from fuel charges; the cost of fuel is passed directly through to the customer.

Why are electricity rates changing?

The base rate adjustment is part of a planned update approved by the Utility Regulation and Competition Office (OfReg). It allows Island Energy to continue funding:

  • Network maintenance and system reliability
  • Equipment and infrastructure upgrades
  • The roll‑out of smart meters
  • Renewable energy and sustainability projects

To date, Island Energy has invested over KYD $5 million in new generation equipment, upgraded networks, service vehicles, and enhanced safety measures to improve reliability and reduce unplanned outages.

When will the new rates take effect?

  • Electricity usage from: 21 April 2026
  • Bill customers: The change will be reflected in May 2026 invoices
  • Prepaid (PAYG) customers: The new rate will apply to transactions made on or after 21 April 2026

Which part of my bill is affected by this change?

Only the base electricity charge, shown as “Electric” on your bill, is affected.
Fuel charges are not included in this adjustment.

How much will my bill increase with the base rate increases?

On average, customers can expect an increase of approximately 2.8% to their total bill. Actual impacts may vary depending on electricity usage and fuel prices.

For example, a KYD $400 monthly bill would increase by approximately KYD $11.20

Why might fuel charges increase separately?

Island Energy is closely monitoring developments in the Middle East. Whilst the full impact of rising global fuel prices has not yet reached the Cayman Islands, increases are expected.

Diesel fuel is sourced internationally and makes up the majority of electricity generation costs. Fuel charges are passed on to customers exactly as incurred, with no mark‑up from Island Energy.

You can view fuel charges on your bill under Current Charge Details – Fuel Surcharge.

How is Island Energy working to keep costs down for customers?

Island Energy is committed to keeping customer bills as low as possible by continually reviewing cost-saving initiatives while maintaining safe and reliable service.

As part of our transition towards renewable energy, we are working to reduce reliance on diesel fuel, helping to minimise exposure to fluctuating global fuel prices.

Customers can also manage costs through efficient energy use. For tips on creating a greener and more efficient home, visit: www.islandenergy.ky/news/our-tips-for-a-greener-more-efficient-home/

Who can I contact if I have further questions?

For more information or assistance: