Cayman Water , Ask Auntie, CNS Local LifeI just received a whopping US$25,000 water bill from Cayman Water due to a water pipe break on the outside of my home. I contacted Cayman Water to ask why they did not bother to contact me when they saw my bill increase from the normal $80 average that I pay per month and why couldn’t they tell that almost 1 million gallons more was pumping into my home. Their answer was simply they are not responsible for anything that breaks after their meter and there is no way for them to monitor any excess water coming in to my home like the Water Authority does for their customers.

According to them they are working on getting new smart water meters in but the process will most likely take another two years. Well, that doesn’t help me now, does it? I also contacted my insurance company and they refused to entertain my request for help, stating that if the pipe had burst on the inside of the house they would have paid to have the inside repaired but not the water bill. What is the sense of having property insurance when they cherry pick everything to ensure you don’t get a red cent when you have to submit a claim?

The only reason that I knew of the pipe break was that the guy who came out to read the meter at the end of the month saw the meter spinning like crazy and notified my tenant of the water break. I have no idea how long this leak was going on as one would think with a million gallons spewing out one would see it somewhere in the yard but other than that one spot we could find no other leaks.

My questions are: Isn’t it unreasonable to ask me to pay US$25K for a water bill that could have easily been prevented by simply having the right technology in place? How does 1 million additional gallons escape from their system and they have no idea where it went or where it is going? Which family home uses 1 million gallons of water a month? Why does the Water Authority, who is owned by the government, have this technology employed but the private firm Cayman Water doesn’t? Are there any consumer protection laws to assist people like myself who cannot afford to pay these outrageous bills? Does OfReg regulate Cayman Water and if so what are they doing to protect ordinary citizens like myself from these giants?

I would have been happy to pay double my normal water bill if they had caught it but to ask me to go from paying on average US$80 a month to US$25K because they don’t have safety systems in place to prevent this problem is wrong.

What would have happened if a little 80-year-old lady living alone in West Bay broke a pipe and they wanted to charge her US$25K? Would they simply just turn off the water and refuse her a connection if she couldn’t come up with the US$25K? This must happen all the time and it is a licence to print money for Cayman Water. Is there any way to find out if I have any recourse otherwise it looks like I may have my water turned off and I don’t have an alternate source to get water?

Auntie, I can’t sleep at night wondering where I will find this money and will I have water next month so please try to get me some answers urgently.


Auntie’s answer: I have to admit my mouth dropped open when I read this question. I have never heard of a situation like this before.

I contacted Cayman Water and spoke with company general manager Manuel Thomaz, who confirmed the bill amount and said he is in discussion with the reader “to help him the best way within our limitations”. What this means, Mr Thomaz explained and as the question indicated, is that under the company’s policy and as written in its contracts, its responsibility “ends with the property’s boundary”, adding, “We don’t have the tools to monitor what goes into the customer’s residence.”

He said that even automatic meters would not send readings on a real-time basis and that the company recommends customers check their meters once in a while to see if they are spinning.

After the Cayman Water employee noted the spinning meter in question, it was determined that 22 gallons of water per minute were spewing from the pipe. Mr Thomaz added that the meters can register flows of up to 30 gallons per minute. Based on a 27-day cycle, the company estimated that equalled more than 800,000 gallons of water lost. Those kinds of numbers are hard to fathom.

As to how this massive leak wasn’t noticed, he suggested it could have all drained into a nearby canal.

Whatever the reason, the leak wasn’t discovered, and while acknowledging this situation was “very rare” and “very, very unfortunate for the customer”, he said the responsibility for paying the bill lies solely with the account holder. He also noted how expensive it was for the company to filter, desalinate and pressurise that enormous amount of water.

At this point, the solution being discussed is a very extended payment plan. The usual company policy is accepting instalments over a maximum 12-month period but Mr Thomaz said that they would set up a plan to accommodate the customer’s ability to pay which could be extended for “many years”.

In addition, while OfReg does regulate Cayman Water, he said it is concerned with rates and properly managed finances of the company, noting they have to balance the interests of the customer with utility rates defined by the regulator. But, sadly for the reader in this case, Mr Thomaz added that OfReg does not have a policy in place covering compensation for the utility or the customer, and there is no compensation for leaks.

I have reached out to OfReg for confirmation and am awaiting a response from the Energy and Utilities Team. I will provide an update when I hear back.

I checked with the Water Authority, who said they could not comment on Cayman Water’s policies or procedures, but did provide its own, which you can read here. Frankly, they don’t offer much comfort that the same thing could not happen to one of their customers.

I wish I could offer some hope the reader. This is truly an awful turn of events. I also take the point about what would happen if an old-age pensioner encountered this issue; it would clearly prove disastrous. For most people, though, facing a bill of this size would be horrendous.

I am not an expert on utilities but it does seem to me that it would not be unreasonable to place some sort of cap on liability for consumers so that no one has to face a potential years-long financial burden for something that was not of their doing. This would also create an incentive for the utility companies to prevent this from happening.

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