OfReg defers Water Authority’s plan to increase rates | Loop Cayman Islands

The content originally appeared on: Cayman Compass
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Water Authority – Cayman’s (WAC)’s intention to increase rates has been deferred– for now.

The OfReg Board of Directors considered the WAC rate adjustment submission at its monthly meeting on April 14 2022. By law the rate adjustment must be reviewed and agreed by OfReg.

The Board reviewed the Water Authority’s rate adjustment submission and had found that the 2020 year’s financial statements supporting the adjustment did not justify the need for an increase.

Mr Peter Gough, interim CEO, OfReg said:

The responsibility of OfReg is to ensure fair prices for the consumer also means that we must legally and impartially review and agree to any increases requested by operators and licensees. Therefore, we have directed the Water Authority to provide further information to support its submission, including its 2021 financial year statements and forecasted five-year Capital Investment Plan (CIP).

Based on the Regulator’s findings and recommendations, the Board deferred the rate increase submission pending the review of further information requested from the authority.

“As the independent regulator, OfReg takes its remit to ensure fair pricing and protect consumers, extremely seriously,” said Mr Gough. “It is the view of the regulator in this case that consumers should not bear an unjustified water rate increase at a time when household budgets are already stretched. We are fully aware of the impact of global fuel prices and the knock-on effects in Cayman on energy costs and the cost of living generally.”

OfReg will make a further announcement on review of the requested information.

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