Electricity bills in the Cayman Islands increased from 1 June after regulators approved changes to rates charged by Caribbean Utilities Company (CUC) and adjustments to fuel-related costs.
The rate changes affect CUC’s energy charge, facilities charge and licence and regulatory fees, the company announced in a press release on 3 July.
For the average residential customer using 1,158 kilowatt hours (kWh) of electricity per month, CUC said the combined impact of the energy charge and facilities charge adjustments amount to an increase of CI$3.27 compared with May.
Licence and regulatory fees add a further $1.06.
Residential customers are now paying a monthly facilities charge of $6.96, up from $6.82, while the energy charge increased from $0.1360 to $0.1387 per kWh.
General commercial customers saw the monthly facilities charge rise from $37.70 to $38.45, while the energy charge increased from $0.1519 to $0.1550 per kWh.
For large commercial customers, the facilities charge increased from $197.69 to $201.64 per account. Energy, demand and additional capacity charges also rose under the revised schedule.
Fuel cost increase
The increase comes as fuel costs continue to place pressure on electricity bills.
CUC said a customer using 1,158 kWh during June can expect fuel costs to add $63.46 to their bill.
However, under the government’s Fuel Cost Relief Programme, that customer would receive a credit of $17.43, reducing the net fuel-related increase to $46.03.
The company said fuel costs are determined by global market conditions and passed directly to customers without any markup.
According to CUC, the fuel cost rate increased from $0.140253 per kWh in May to $0.195054 per kWh in June.
The government fuel duty rate fell slightly from $0.013044 to $0.012975 per kWh, while the renewable energy charge increased from $0.006131 to $0.007137 per kWh.
The government’s Fuel Cost Relief Programme is expected to continue through the summer months and will cap the fuel cost rate at CI$0.18 per kWh, subject to specified conditions, for electricity consumed between June and September.
CUC said investments aimed at reducing fuel consumption generated US$7.9 million in fuel cost savings for households and businesses in Grand Cayman during 2025.
The company reported a further $1.85 million in savings during the first quarter of 2026.
The savings were attributed to projects including battery energy storage systems, upgrades to generating units and resilience initiatives.
CUC also said projects that reduce reliance on diesel, including energy storage and greater integration of renewable energy, could help manage long-term electricity costs.
Richard Hew, president and chief executive officer of CUC, said: “We understand that any change to electricity bills can be challenging, particularly during the summer months.
“We are committed to working with the government through its Fuel Relief Programme.
“Despite these efforts, rising global fuel costs will see household energy bills increase.
“That is why we welcome the focus on enduring solutions including the return of the Cayman Home Energy Efficiency Retrofit (CHEER) programme and acceleration of utility-scale renewable energy projects.
“The rate change for regulatory fees and CUC energy charges are carefully considered and necessary to ensure we can continue investing in infrastructure that improves efficiency, enhances reliability, and supports long-term cost stability for our customers.”
The company said customers experiencing difficulties paying their bills can access payment plans and payment extensions.
