March 28th, 2003

CUC ADVISORY ON RISING FUEL COSTS


Caribbean Utilities Company, Ltd. (CUC), today announced that customers can expect an increase in the Fuel Adjustment portion of their April bills as a result of increasing world fuel costs in recent months.

World fuel prices, which fluctuate according to market conditions, are driven by supply and demand and CUC’s fuel adjustment mechanism, which is similar to the process used by electric utilities all over the world, passes on fluctuations in the cost of fuel to customers. In accordance with CUC’s Licence, the calculation process of the fuel adjustment and Government review takes place over a two-month period. CUC’s fuel costs for February will therefore affect customers’ bills in April.

The cost of fuel has risen steadily from $1.36 in December 2002 to $1.54 per gallon in February 2003. This increase has resulted in the Company’s fuel factor, rising from 3.4 cents in March 2003 to 4.6 cents in April.

The outlook for fuel prices is dependent upon the events in the Middle East, which are uncertain at this time. However, when there is a reduction in the price of fuel, there will be a corresponding decrease in CUC’s Fuel Adjustment.

CUC encourages customers to take advantage of its Energy Smart programme, which promotes energy conservation and provides tips on how to reduce electrical consumption.

Customers who would like to receive information on our Energy Smart programme and discuss the impact of the increase of fuel costs on their bills are invited to contact CUC’s Customer Service Department at 949-4300 or by email to service@cuc.ky