Effective January 1, 2025, electricity base rates will increase by 5.6%.This will help us to maintain the network efficiency, further investing in operational infrastructure.
To help you understand these updates and how they may affect you, we’ve provided answers to frequently asked questions below.
FAQ’s
What are electricity base rates?
The base rate differs from the fuel cost. The base rate is a fixed cost that covers infrastructure, maintenance, and operational expenses. Fuel costs (currently diesel) are essential for generating electricity and can vary based on supplier charges.
Why are electricity rates changing?
The rates are changing to fund operational upgrades, network maintenance and renewable energy investment projects. To date, over KYD $4.5 million has been invested in new-generation equipment, upgraded networks, new service vehicles, and enhanced safety measures to improve reliability and reduce unplanned outages.
The increase is part of a planned adjustment approved by OfReg to align the base rate with the costs of maintaining and improving electricity services.
When will the new rates take effect?
Bill customers: The rate increase will appear on January 2025 invoices, which will be sent out in late January and due in February.
PAYG customers: The new rate will apply to transactions starting 2 January 2025.
How much will my bill increase?
On average, customers can anticipate an increase of 3% to 3.7% in their total bill. However, this estimate may vary depending on factors such as individual usage and fluctuations in fuel prices.
How do electricity rates in Cayman Brac and Little Cayman compare to Grand Cayman?
Electricity rates in Cayman Brac and Little Cayman have remained unchanged for over 20 years. Fluctuations in consumer bills over that time have been solely the result of the fuel surcharge component. In contrast, customers in Grand Cayman have seen a 30% increase during the same period.
How do we calculate your January bill cycle with the new rate in effect from 1st January?
Early January Island Energy will take an interim meter reading and the bill will then be calculated using the new rate effective from 1st January, to ensure accurate and fair billing.
How is Island Energy working to keep costs down for customers?
Island Energy is committed to keeping customer bills as low as possible by continuously evaluating cost-saving initiatives. As part of our steps toward a renewable energy future, we plan to reduce reliance on diesel fuel, helping us better control costs and minimise the impact of fluctuating fuel prices. You can also take steps to manage your energy consumption. For tips on creating a greener and more efficient home, visit our news page at https://www.islandenergy.ky/news/our-tips-for-a-greener-more-efficient-home/
Who can I contact if I have further questions?
Visit our Contact Us page www.islandenergy.ky/contact-us for our customer service details or www.ofreg.ky
