Consolidated Water Co. Ltd. (CWCO) announced its subsidiary, Cayman Water, has been issued a new 25-year license by the Cayman Islands' Utility Regulation and Competition Office (OfReg). The agreement provides long-term regulatory certainty for its retail water operations after an extended period of negotiations and operating under an expired license since 2018.
Key Details
- Agreement: Issuance of a new 25-year exclusive license to produce, distribute, and sell potable water in its Grand Cayman service area.
- Term & Effective Date: The license has a term of 25 years, commencing on August 1, 2026.
- Financial Impact: Based on the new rate structure, the company estimates its pro forma revenues would have been lower by approximately $2.1 million in 2024, $1.9 million in 2025, and $0.6 million in Q1 2026 compared to the prior rate structure.
- Background: The license concludes negotiations that began in 2017 and resolves uncertainty from an operating agreement that formally expired in January 2018.