Fuel Price Volatility Management Program

In March 2011, the ERA (now OfReg) approved CUC’s proposed Fuel Price Volatility Management Programme. The objective of the programme is to reduce the impact of volatility in the Fuel Cost billing component rate paid by the Company’s customers for the fuel that the Company must purchase in order to provide electricity. The programme utilises call options to promote transparency in pricing and to create a ceiling price for fuel costs at pre-determined contract premiums.

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