December 18th, 2013

For Immediate Release

Caribbean Utilities Company, Ltd (“CUC” or “the Company”) and the Electricity Regulatory Authority (“ERA”) are pleased to announce that after an extended period of negotiations, CUC’s property damage insurers have  agreed  to  reimburse the  Company for  additional fuel  costs incurred in 2011 which will result in a reduction to the January 2014 Fuel Cost Charge to electricity consumers.

In early 2011, CUC experienced the loss of several of its generating units due to mechanical failure.  Due to these failures and in order to ensure continuity of electricity service, CUC imported several mobile generating units on a temporary basis while it conducted necessary repairs.  These smaller and less efficient generators utilize more fuel than CUC’s installed generators thereby resulting in additional fuel costs being charged to consumers over that period. CUC passes through all fuel costs to consumers on a two-month lag basis with no mark-up.

In October 2013, CUC’s property damage insurers agreed to a settlement of US$950,000 for the additional fuel costs incurred in 2011. CUC and the ERA have agreed that these proceeds will be credited back to consumers against the Fuel Tracker Account in November 2013 reducing the fuel cost charge for January 2014 from CI$0.2202 per kilowatt hour (kWh) to CI$0.2142 per kWh.

All other things being equal, this lower fuel cost charge will represent a reduction of approximately 2% on consumer bills for the month of January 2014.

Whilst noting that the impact on customer bills may not be that significant, the ERA noted that more than anything the recovery was an example of the electricity regulatory framework

working to reduce consumers’ costs as envisaged when the current framework was introduced in

2008. “On behalf of electricity consumers we are very pleased that CUC was able to claim this fuel refund from their insurer and look forward to seeing the benefit in January’s electricity bills” said Charles Farrington, ERA Managing Director.

Caribbean Utilities Company, Ltd.

457 North Sound Road, P.O. Box 38, Grand Cayman KY1-1101, CAYMAN ISLANDS Tel: (345) 949-5200, Fax: (345) 949-5203, Website: www.cuc-cayman.com