Caribbean Utilities Company, Ltd.  2011  Annual Report Notes to Financial Statements 49 (Expressed in thousands of United States dollars) The objective of the Fuel Volatility Programme is to reduce the impact of volatility in the Fuel Cost Charge paid by the Company’s customers for the fuel that the Company must purchase in order to provide electricity service. The programme utilises call options to promote transparency in pricing. The fair value of the fuel option contract reflects only the value of the heating oil derivative and not the offsetting change in the value of the underlying future purchases of heating oil. The derivative’s fair value shown in the above table reflects the estimated amount the Company would pay to terminate the contract at the stated date. The fair value has been determined using published market prices for heating oil commodities. The derivatives entered into by the Company relate to regulated operations and any resulting gains or losses and changes to fair value are recorded in the regulatory asset/regulatory liability accounts, subject to regulatory approval and passed through to customers in future rates. Credit Risk: There is risk that CUC may not be able to collect all of its accounts receivable and other assets. This does not represent a significant concentration of risk. The requirements for security deposits for certain customers, which are advance cash collections from customers to guarantee payment of electricity billings; reduces the exposure to credit risk. CUC manages credit risk primarily by executing its credit collection policy, including the requirement for security deposits, through the resources of its customer service department. Trade and Other Accounts Receivables ($ thousands) As at As at December 31, 2011 December 31, 2010 Current  10,848 9,556 Past due 31 to 60 days  1,297 809 Past due 61 to 90 days  485 348 Past due over 90 days  3,469 1,423 Total accounts receivables  16,099 12,136 Less: Allowance for doubtful accounts  (156) (219) Less: Consumer deposits and advances for construction  (4,357) (4,178) Net exposure  11,586 7,739 As at December 31, 2011, the net exposure on the balance sheet is $11.6 million.