GOVERNMENT STEPS IN WITH FUEL PRICE RELIEF

Households throughout the Cayman Islands are set to benefit from a CI$9 million government-funded relief programme. This aims to cushion the local impacts of the worsening global fuel price crisis, resulting from the conflict in the Middle East. Residential electricity customers face a projected fuel charge spike of around 70 per cent during the summer months, according to the National Coalition For Caymanians(NCFC) administration. The Government said it is putting in place “a comprehensive, three-phase programme to address the acute affordability challenge facing households this summer”.

It also said the intervention was prompted by forecasters’ warnings of one of the hottest summers on record this year and the potential for heatwave conditions across the region. “Cayman’s residential electricity customers face a projected fuel charge spike from CI$0.14 per kilowatt hour(“kWh”) in prior-year summer months, to an estimated level as high as CI$0.24/kWh in July 2026, a rise of more than 70 per cent,” it said.

THREE-PHASE RELIEF SCHEME

The three-phase relief scheme covers a spiral in local energy costs expected this summer. It addresses an immediate crisis, promotes investment in home energy efficiency to lower consumption at source, and speeds up the transition to solar energy. The goal is to permanently reduce Cayman’s exposure to global oil price shocks.

Phase 1 Immediate (Now – October 2026): Summer Fuel Relief

Effective for June, July, August and September, import duty will be waived on all fuel types: gasoline, diesel and propane, reducing costs at the pump, when purchasing propane, and on electricity bills. Caribbean Utilities Company, Ltd. (CUC) and Island Energy will implement a residential electricity fuel cost charge cap of CI$0.18/kWh, assisting nearly 90% of residential customers who consume between 101 kWh and 2,000 kWh per month. Relief will appear automatically on bills, no application required for the vast majority. A dedicated special pathway is being established for households with exceptional needs, including large or multi-generational families and those dependent on life-sustaining medical equipment.

Phase 2 - Medium Term (2027–2028): Home Energy Efficiency

The NCFC Government will relaunch and significantly expand the Cayman Home Energy Efficiency Retrofit (CHEER) programme, with a focus on providing or subsidising the installation of spray foam insulation in residential roofs, one of the highest-impact interventions for reducing cooling costs in a tropical climate. In a later stage, the programme will also support eligible homeowners in replacing air conditioning units and fans with more energy-efficient alternatives.

Phase 3 - Longer Term (2027 and Beyond): Transitioning to Solar Generation

In line with the National Energy Policy, the NCFC Government is taking concrete steps to scale solar energy generation across the islands, reducing dependence on fossil fuels, insulating Cayman’s energy system from geopolitical shocks and transitioning to cleaner, more sustainable power.

MAKING IT HAPPEN

Hon. Premier André Ebanks:

“The NCFC Government is not willing to stand by while Caymanian families face soaring electricity bills caused by conflict on the other side of the world. We are acting before the summer bills arrive, not after. This is not simply a crisis response. It is the first step in a long-term plan to make Cayman’s energy system more efficient, more resilient and more affordable for every family. We are dealing not just with the symptoms, but with the root causes.”

Hon. Minister for Finance & Economic Development Rolston Anglin:

“Phase 1 is about helping families now with tangible reductions to the cost of living in their daily lives. But the long-term programme is where this Government’s ambition is most clearly expressed. Through the CHEER expansion, we are making long-term investments in our most vulnerable families who cannot afford to do so. With a responsible transition to solar generation, we are investing in Cayman’s future. These are firm commitments, grounded in sensible economic policy, and they will deliver lasting savings to households across all three islands for generations to come.”

Hon. Minister for District Administration and Home Affairs Nickolas DaCosta:

“The NCFC government has put together an approximately CI$9 million relief package that will benefit households in multiple ways – a direct subsidy to lower electricity bills, help at the pumps and with propane for cooking. The fuel charge cap of CI$0.18/kWh is grounded in a decade of historical data. By delivering automatic relief to nearly 90 per cent of residential electricity customers, we avoid the delays of individual applications and return money to people’s pockets quickly. That is fiscal responsibility in practice: spending where it matters, with evidence to back every decision.”

Hon. Minister for Health, Environment and Sustainability Katherine Ebanks-Wilks: “Our summers are getting hotter, and the threat of heat-related illness is growing. Forecasters are warning that this will be one of the hottest summers in years, while global fuel prices are spiking. This will impact our elderly residents, young children, those with chronic health conditions and the most vulnerable in our community. This programme helps families keep their homes cool without being forced to make difficult choices. Protecting people’s health and protecting their pockets go hand in hand.”

Richard Hew, President and CEO, Caribbean Utilities Company, Ltd:

“CUC is pleased to work closely with the Cayman Islands Government to deliver this initiative, which will provide cost relief for our residential customers during the upcoming summer months, when consumption and weather temperatures peak. We also welcome the Government’s support of energy efficiency initiatives and long-term commitment to accelerating solar energy. CUC has been a long-standing supporter of utility-scale solar, which provides energy at a fraction of the cost of fossil fuels. Our Company continues to be committed to delivering projects that will drive affordability for all customers.”

Matthew Bishop, Director, Island Energy Limited:

“IEL is pleased to support the Government with this initiative to help alleviate the expected increases in energy costs on the people of Cayman Brac and Little Cayman.”

PPM WELCOMES FUEL RELIEF BUT SAYS IT PROPOSEDE FIRST

Meanwhile, the main opposition People’s Progressive Movement (PPM) has welcomed what it called the government’s sudden announcement of fuel relief measures. In a press release the PPM describes the decision as “an outcome that follows weeks after MP Roy McTaggart first put forward a proposal to waive fuel import duty to ease the burden on Caymanian families and businesses”.

It said Mr McTaggart’s motion had set out “a practical and immediate solution” to address rising fuel costs. “The government’s subsequent announcement reflects the growing recognition of the need for action in this area. Fuel costs impact every corner of the economy—from transportation to grocery prices and electricity bills—and relief has been urgently needed,” it stated.

According to the PPM, it has consistently advocated for targeted, meaningful measures to address the rising cost of living. “It is encouraging to see this issue now being acted upon. While the government has presented this as its own initiative, the timing is noteworthy,” it added.

The party claimed that its proposal, “advanced weeks ago”, contributed to bringing this issue to the forefront and shaping the response now being seen. “From the outset, our focus has been on delivering real, immediate relief to Caymanians who are feeling the strain of rising fuel costs.”