EAF stands for Energy Adjustment Factor. The EAF is a surcharge that is adjusted up, or down, each month according to the cost of the energy utilized by Cayman Water to produce water.
The EAF is then applied to each gallon of water consumed, in addition to the base rate. Cayman Water does not control the EAF; it is calculated according a formula contained in Cayman Water’s License Agreement and verified each month by Water Authority-Cayman.
The formula uses the average cost for energy and an efficiency constant that effectively limits the amount of the surcharge, so Cayman Water may not collect money from its customers if it does not operate its water production equipment in an energy efficient manner.