Government Announces Three-Phase Plan to Lower Energy Costs and Support Families

The NCFC Government today announced a comprehensive, three-phase programme to address the acute affordability challenge facing households this summer, and to tackle structural improvements needed to reduce energy consumption more sustainably. The announcement is the result of purposeful discussions started earlier this year on how to alleviate energy cost pressures that have long burdened families across the three islands. It reflects the Government’s commitment to responsible leadership: addressing immediate pain while laying the foundations for lasting change.

Why Action Is Needed

Global geopolitical instability - principally the conflict in the Middle East – has driven international fuel prices sharply upward. Without government intervention, 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. This coincides with forecasters warning of one of the hottest summers on record, with potential heatwave conditions across the region. The NCFC government is taking action to reduce fuel costs in the home and at the pump as they affect the cost of living in almost every area of everyday life.

A Three-Phase Plan: Short, Medium and Long Term

The Government’s plan is structured in three deliberate phases. The first addresses the immediate summer crisis. The second invests in home energy efficiency to lower consumption at source. The third accelerates the transition to solar energy to permanently reduce Cayman’s exposure to global oil price shocks. Together, they represent a coherent, evidence-based strategy rather than a one-off reaction.

Phase 1: Immediate (Now – October 2026)

Summer Fuel Relief: Helping Households Right Now

Effective for June, July, August and September consumption, the NCFC Government is implementing two targeted interventions with an estimated combined cost of CI$9 million. First, import duty on all fuel types, gasoline, diesel and propane, will be waived for four months, reducing costs at the pump, when purchasing propane, and on electricity bills. Second, 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. No one will be left behind.

Phase 2:  Medium Term (2027–2028)

Tackling Root Cause #1: Home Energy Efficiency

Rising electricity bills are partly a symptom of how much energy Caymanian homes consume. 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. By reducing consumption, Government is helping households permanently lower their bills, independent of global fuel prices.

Phase 3:  Longer Term (2027 and Beyond)

Tackling Root Cause #2: Transitioning to Solar Generation

Cayman’s deepest energy vulnerability is its near-total dependence on diesel-fuelled generation. Every oil price spike on international markets reverberates directly through household electricity bills. 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.

Responsible Leadership in Action

The programme requires collaboration across multiple government ministries. Recognising the challenge of rising fuel costs as an economic, environmental and public health imperative, the NCFC government has taken decisive action with long-term benefits.

“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 Premier André Ebanks

“Phase 1 is about helping families now with tangible reductions to 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 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 Rolston Anglin, Minister for Finance & Economic Development

“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 Nickolas DaCosta, Acting Minister for Finance and Economic Development, Minister for District Administration and Home Affairs

“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.”

- Hon Katherine Ebanks-Wilks, Minister for Health, Environment and Sustainability

“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.”

- President and CEO, Mr. Richard Hew, Caribbean Utilities Company, Ltd.

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

- Director, Mr. Matthew Bishop, Island Energy Limited

Phase 1 Programme at a Glance