Utility Regulation and Competition Office of the Cayman Islands

Cayman Islands, Caribbean

Raftelis completed a water cost-of-service study for the Utility Regulation and Competition Office of the Cayman Islands (OfReg). The goal of the study was to recommend cost-justified and reasonable revenue requirements and water rates for the Cayman Water Company, a private water company regulated by OfReg that provides drinking water to a significant portion of the population on the Islands. The work involved research and review of regulatory frameworks of drinking water companies operating in the Caribbean, the U.S., and the U.K. reviewing and analyzing financial and rate information provided by the Cayman Water Company, recommending an economic regulatory framework for use by the Utility Regulation and Competition Office moving forward, and documenting recommendations in a comprehensive report. OfReg is using Raftelis’ analysis to negotiate with the Cayman Water Company to arrive at new rates for the Company’s customers.