ACM: Maximum rates electricity on Caribbean Netherlands decrease due to lower fuel prices
The Authority for Consumers and Markets (ACM) has established the maximum rates for distributing electricity in the Caribbean Netherlands. The rates will decrease from 1 July 2023 because there has been a decrease in the prices of fossil fuels used for the production of electricity on the islands.
Each year in December, the ACM establishes maximum rates for producing and distributing electricity in the Caribbean Netherlands. To account for fluctuating fuel prices, the ACM is able to establish maximum rates as of 1 July should this be necessary. Energy suppliers can then use these maximum rates to establish rates that they will charge to inhabitants and companies.
Subsidies
Due to this change in maximum rates, buyers of electricity will pay a lower variable rate for electricity as of 1 July. The Ministry of Economic Affairs and Climate Policy has agreed to subside 50% of the variable rates in 2023 should they exceed USD 0.38 per kWh. Because the revised maximum rates on all islands are lower than USD 0.38, the ministry no longer has to subsidise these variable costs. Besides a subsidy for the variable rate, the Ministry of Economic Affairs and Climate Policy has also made sure that island inhabitants do not have to pay costs for managing the electricity grid (the standing charge). This subsidy for the standing charge applies to the whole of 2023.
Bonaire
On Bonaire, the maximum variable consumer rate will decrease from around USD 0.43 per kWh to around USD 0.35 per kWh. The maximum Pagabon rate (prepaid) will decrease from around USD 0.68 per kWh to around USD 0.59 per kWh, before subsidies are implemented. The average household on Bonaire will thus experience a decrease of around USD 14 per month (taking subsidies into account).
St. Eustatius
On St. Eustatius, the maximum variable consumer rate will decrease from around USD 0.50 per kWh to around USD 0.37 per kWh. The average household on St. Eustatius will thus experience a decrease of around USD 17 per month (taking subsidies into account).
Saba
On Saba, the maximum variable consumer rate will decrease from around USD 0.43 per kWh to around USD 0.37 per kWh. The average household on Saba will thus experience a decrease of around USD 10 per month (taking subsidies into account).