(CNS): Customers can expect to see a decline in fuel cost charges when they get their bills for June and July, CUC has said. But that could be countered by another increase in the base rate, which CUC said was verified and accepted by OfReg to roll out in June’s bills. As bills appear to be skyrocketing for everyone, the fuel rate will decrease by 7% in June on May’s rate and in July by another 6%.

However, customers are also seeing a 3.7% base rate hike kicking in this month, which follows an increase earlier this year as CUC sought to get back the deferred base rate increase from last year, cutting into the fuel factor savings. Customers will also see a slight increase in the Licence and Regulatory Charge per kilowatt hour from $0.005 to $0.0155.

Following some very high bills in May due to the hot weather, which persisted throughout June and into July, with Cayman experiencing one of the hottest summers on record, CUC said that overall, June bills have decreased by 2.2% and they are expected to fall by another 3.6% in July.

Nevertheless, CUC urged customers to be careful with fuel consumption. “Summer months, due to the heat index and the additional pressure placed on air conditioning loads, can cause an increase in electricity consumption,” CUC said.

Fuel rates are changed each month in line with what CUC said was the actual costs incurred and can be found on CUC’s website. The base rate is increased in line with a formula as per condition 25 of CUC’s Transmission and Distribution (T&D) Licence. It is based on data used to determine a relevant inflation factor or a price which is based on 60% of the change in the Cayman Islands Consumer Price Index and 40% of the change in the USA. The base rate increase does not impact the fuel cost charge that is reflected on customers’ bills.

This latest base rate adjustment of 3.7% was verified by OfReg to begin on 1 June, CUC said. CNS contacted OfReg about this increase, and officials confirmed that it had verified the press release prior to release to ensure its accuracy.

“OfReg’s role in the annual base rate adjustment is to verify and confirm the calculations submitted by CUC against its audited financials, the 10-year US treasury yield and the Cayman and US consumer price index (CPI) figures,” said Louis Boucher, the deputy executive director for Energy and Utilities.

He added that the 3.7% increase represents about a $5 increase for the average residential customer who consumes 1,100 kWh per month. Since the base rate only represents one-third of the typical electricity bill, with fuel representing nearly all the rest, the net increase in consumers’ overall bills from the base rate adjustment represents a 1.3% increase.

For more information about the terms of CUC’s T&D Licence or the RCAM and to view the current rate schedule, visit www.cuc-cayman.com or www.ofreg.ky.