Cooler weather cuts CUC profits
(CNS Business): Power consumption was down 3% for the last quarter of CUC’s financial year due to cooler weather, the firm said yesterday as it released its figures for the three months ended December 31. But the monopoly power provider and its shareholders are not out of pocket, since a growth in customer numbers boosted net earnings for the year to $20.8 million, a $0.4 million increase from last year.
The firm said the overall annual increase was down to 2% kWh sales growth, lower depreciation and maintenance expenses and higher other income. These items were partially offset by higher consumer services expenses, driven by a one-time adjustment to increase the Company’s allowance for doubtful accounts during the twelve months ended 31 December 2014.
Although the average monthly temperature for the Fourth Quarter 2014 was 3.3 degrees Fahrenheit lower than the average monthly temperature experienced during the Fourth Quarter 2013, resulting in a slight decrease for that last three months, annual sales were up as a result of a growth in customer numbers. Total customers at the end of 2014 were 27,784, compared to 27,364 customers in 2013.
“In spite of the decrease in earnings and kilowatt hour sales, the Fourth Quarter 2014 recorded overall positive results for the Company,†said President and CEO, Richard Hew. “The announcement of CUC’s winning of the bid for firm generation as well as progress being made by one of the renewable energy providers to develop a 5 megawatts solar power plant, are highlights of the period under review. The Company remains focused on delivering a cost-effective, safe and reliable service to its customers while at the same time improving efficiency and managing costs.”
Following the ERA bid  for new generation capacity, CUC will develop and operate a new 39.7 megawatts diesel power plant including two 18.5 MW diesel generating units and a 2.7 MW waste heat recovery steam turbine.
“The project cost is estimated at $85 million and the plant will be commissioned no later than June 2016,†the firm stated.
“Over the next year, the Company will see significant activity associated with the development of the new diesel power plant and the waste heat recovery steam turbine. Upon completion, the plant will boast the most fuel efficient generation ever installed by CUC which will bring increased reliability and lower cost to our consumers,” Hew added.
Category: Local Business
That is 112 CI profit per month ! per household.
Now this money goes to a small group of wealthy shareholders.
Time to nationalize this company and give the money back to the people.
Must be getting the extra money from fuel factor as my bill was 100 for the electricity and 300 for fuel and 80 for duty seriously the fuel is killing us time for the government to make solar duty free and reduce the cost of this which would reduce the costs for home and business owners.
agree 100% but I clicked dislike in error – and cant un-dislike – sorry!
Ah, Crockodile Tears! Don’t shed a tear, they’ll get yah come April.