GRAND
CAYMAN, CAYMAN ISLANDS; 23
July 2019 

The
rate charged for water by the Water Authority will only increase a
minor increase of 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 Authority Regulations (2018 Revision) (“the Regulations”)
gives the Water Authority 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 allows 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. 

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.