NEWS

PRESS RELEASE    
  
OFREG APPROVES WATER Office RATE ADJUSTMENT 
 
OfReg approves the Water Office rate adjustment of 1.46% effective July 1, 2019 
 
GRAND CAYMAN, CAYMAN ISLANDS; 16 July 2019 

The rate charged for water by the Water Office will only increase 1.46% this year, to account for inflation. This small increase is less than two-thirds of what the utility applied for last year. This will represent a marginal increase of approximately $1.50 per month for the average residential WAC consumer. 

OfReg, the regulator of the Energy & Utilities sector in the Cayman Islands, has a responsibility to regulate the quality of the utilities provided to consumers but also to ensure that any rate adjustments permitted under the law are fair to both the commercial interests of the service provider and the consumer.

The Water Office Regulations (2018 Revision) (“the Regulations”) gives the Water Office Cayman the power to fix water, sewerage and septage charges. However, OfReg has a responsibility to first approve rate adjustments, within the scope of the Regulations, which state that the rates “shall be adjusted…”.  However, new regulations should come into effect later this year, and these regulations will state the terms and conditions by which future rate requests will be determined.

Currently, section 44(3) of the Regulations allow for the adjustment for inflation to take effect on the 1st of July annually and are calculated based on a predetermined formula that combines the Cayman Islands Consumer Price Index (CPI) and the US Producer Price Index.  The Regulations also state that the base price adjustments be submitted to the Auditor General for independent verification no later than 15 May of each year.  The Auditor General has confirmed that the data included in the calculations provided by the WAC are correct and OfReg has crosschecked this information.

Mr. Gregg Anderson, Executive Director Energy & Utilities at OfReg, commented on the process behind the rate adjustment: “The Cayman Islands, as a small island nation, cannot provide the economies of scale that would be required for a more competitive environment in the utilities sector.  Therefore, our job is to regulate the quality of the services provided to consumers, as well as to maintain oversight of the rates that utilities can charge, within the confines of the law.  The transparent and thorough process produced a result that balances the needs of customers and the company."
The rate increases will take effect as at 1 July 2019 and will be reflected in July bills which will be issued in early August.

For more information on the sectors that OfReg regulates, please visit ofreg.ky. 
 
ENDS   

  
For more information please contact:

Denise Gower 
Fountainhead 

 +1 345 945 8188 

PRESS NOTES 
 
OfReg (the Utility Regulation and Competition Office) is the independent regulator for the electricity, information and communications technology, water, wastewater and fuels sectors in the Cayman Islands. OfReg also regulates the use of electromagnetic spectrum and manages the .ky internet domain.