CUC demand rates change for big customers

| 27/12/2017 | 4 Comments

(CNS Business): More than 100 of CUC’s largest customers who are both generating their own power and using power supplied by CUC will face a new rate system in 2018. New Demand Rates for large commercial customers and those with Distributed Energy Resources will allow the customers’ billing to be itemized into fixed and variable costs under the new system, which has been approved by the utilities regulator, OfReg, the firm stated. The aim is to cut the overall electricity bill by managing their peak demand. The new system does not affect the CORE programme, used largely by domestic rather than commercial clients of the local power firm. 

CUC said in a release outlining the changes that the demand component will be a proportionately larger part of the bill if the customer’s power demands are high and over a short period of time, and a smaller part of the bill if the customer uses power at a more or less constant rate throughout the month.

Demand rates will be introduced to the 125 large commercial customers and will be offered as an optional rate outside of the CORE programme for customers who wish to have renewable energy systems on their premises.

“It is important for customers to understand that this is not a rate increase and that this new rate structure is revenue neutral for CUC,” said President and CEO of CUC, Richard Hew. “What CUC is working towards is to ensure that the rate structure reflects CUC’s cost to serve our overall customer base and is equitable on a cost basis between customer classes. Based on the studies which have been done over the years on demand rates, it is fair to say that with the introduction of demand rates, there are potential savings for our large customers.”

The new Demand Rates will be introduced in January 2018 and follow the rollout of a customer awareness plan.

Full CUC Press Release on Demand Rates, 22 December 2017

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Category: Local Business, Utilities

Comments (4)

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  1. Anonymous says:

    Which of course will be passed along to us in the form of higher prices….
    Thanks CUC

  2. Anonymous says:

    So basically CUC want more money for nothing and CIG will let them get away with it because they are all CUC share holders!

    We will be burning fossil fuel on this island until the very last barrel of diesel on the planet goes up in smoke!

  3. Anonymous says:

    The first step in time of day billing, my bet is it will hit us residential customers before July…

    Wagers anyone?

  4. Anonymous says:

    Cost of living going up again…

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