Hon Kurt Tibbetts rebuts UDP ERA members’ speculation 

Hon Kurt Tibbetts, Leader of Government Business	Chairman of the ERA Cline Glidden

Friday,  June  10, 2005

Electricity Regulatory Authority (ERA) Chairman, Cline Glidden has publicly questioned Caribbean Utilities Company’s (CUC) purchase of new generators and linked that to the possibility that the Government had granted the firm a new license.

However, Hon Kurt Tibbetts, Leader of Government Business has made a public statement to the contrary.

In Mr Glidden’s opinion, a new license from the Government to CUC, prior to the settlement of the issue of recouping costs of Hurricane Ivan, would mean rate increases would be a given although he admits he has no proof.

“I have no information to say that that is so,” said Mr Glidden, speaking with Cayman Net News. “I simply asked the question based on the assumption that if the company were not sure of a future arrangement then it would have chosen to lease equipment instead.

“If ERA is investigating CUC’s Interim Return document in order to closely examine the final results, I don’t know anything about that as Chairman. No meeting of ERA has been called.

“I fully understand that theoretically and ultimately, Phillip Thomas who is Managing Director of the Authority, will report to the Minister directly, if the Minister says he is to report to him and not to me.

“However, since ERA was put in place primarily as an advisory body for the transition period towards a new license, I would expect to be included in any discussions in this regard and not necessarily in matters related to the current license, because that was granted by the Cabinet.

“If they need me I am willing to continue to serve. However, there was some anticipation of change on my part after 11 May. This would not be unusual. Moreover, I felt that if because of political differences my presence would cause stagnation I would resign.”

Mr Glidden added however that in the run up to elections the current Government never said what position it took on the matter, and he would only stay on if there is something to fight for in the interest of Caymanians.
Addressing the Government’s dealings with the exclusively licensed electricity company and public statements from Mr Glidden and UDP LA member Rolston Anglin, Hon Mr Tibbetts said:

“CUC, under the 25 year exclusive license issued in1986 must each year within 21 days of its financial year end of 30 April, submit an Interim Return detailing its financial results for the year just ended.

“Between the submission of the Interim Return (21 May) and the Final Return (31 July) Government will review the submissions, and ask for additional information and documentation that it may need.

“ERA was established by the previous Government. The initial meeting enabled Board members to prepare for the Interim Return expected from CUC on 21 May CUC was unable to meet that deadline as a result of the complex accounting issues surrounding the additional costs and insurance claims experienced by CUC after Hurricane Ivan.

“Government agreed that CUC would submit its Interim Report on Wednesday 25 May. I can confirm that on that day, the Hon. Financial Secretary hosted a meeting attended by myself, the Hon. Arden McLean, the Managing Director of ERA and members of CUC’s Board of Directors. At that meeting Government received CUC’s Interim Return.”

Hon Mr Tibbetts explained that the Board of Directors of the ERA was scheduled to have their second Board Meeting on 25 May to review the Interim Return submitted by CUC. “However, having only just received the Interim Return on the same date, it seemed reasonable to postpone such a meeting to allow the Managing Director to properly review the Interim Return,” he added.

On 20 May the Managing Director received an email from Mr. Cline Glidden, Jr. (stating) “Re Board Meeting of May 25th, I wanted to inform you that myself and Rolston [Anglin] will probably be producing our letters of resignation at that meeting.”

That meeting was postponed. The current Government and the ERA are all too aware of the spiralling effect that an increase in electricity rates will have on the economy.

“No agreement has been reached with CUC regarding their proposal of a cost recovery surcharge to recover the enormous non-insured costs they have incurred as a result of Hurricane Ivan. Furthermore, no negotiations have taken place.”

CUC has stated that no deal has been struck between the Cayman Islands Government and CUC. A spokesperson for the company has added, “CUC is a reputable company and will stick to its position of negotiating across a table and not through the press.”

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