The NCFC Government has announced a three-phase plan aimed at easing energy costs for households this summer while also investing in longer-term measures to reduce electricity use and dependence on imported fuel. The announcement comes as international fuel prices continue to climb and forecasters warn of an especially hot summer across the region.
As part of the immediate response, Government says import duty on gasoline, diesel and propane will be waived for four months. The measure will apply to June, July, August and September consumption and is intended to reduce costs at the pump, on propane purchases and on electricity bills.
Government is also introducing a residential electricity fuel cost charge cap of 18 cents per kilowatt hour. Officials say the cap will apply to customers using between 101 and 2,000 kilowatt hours per month, covering nearly 90 percent of residential customers across Grand Cayman, Cayman Brac and Little Cayman, with relief expected to appear automatically on bills for most eligible households.
The release states that a special pathway is being created for households with exceptional needs, including large or multi-generational families and people who depend on life-sustaining medical equipment. The combined cost of the immediate relief measures is estimated at about CI$9 million.
Beyond the short-term relief, Government says it plans to relaunch and expand the Cayman Home Energy Efficiency Retrofit, or CHEER, programme. The programme will focus on measures such as spray foam roof insulation, with later phases also expected to support more efficient air conditioning units and fans for eligible homeowners.
Officials say the longer-term goal is to lower household electricity consumption and make families less vulnerable to swings in global oil prices. The third phase of the plan calls for a wider transition to solar energy in line with the National Energy Policy, reducing Cayman’s reliance on diesel-fuelled generation over time.
According to the press release, without intervention residential fuel charges were projected to rise from about 14 cents per kilowatt hour in previous summer periods to as high as 24 cents per kilowatt hour in July 2026. Government says the measures are designed to address immediate cost-of-living pressure while also building a more resilient and affordable energy system for the future.
Further details on the expanded CHEER programme and the solar transition strategy are expected later this year.
Read more about the programme and the full press release at gov.ky/government-announces-three-phase-plan-to-lower-energy-costs-and-support-families