The Netherlands Authority for Consumers and Markets sets maximum tariffs for electricity and drinking water in the Caribbean Netherlands
The Netherlands Authority for Consumers and Markets (ACM) set the maximum tariffs for electricity and drinking water on Bonaire, St. Eustatius and Saba for 2025. The ACM does this annually, making sure that customers do not pay too much and that the production companies have sufficient financial room for investments needed to make the production of electricity and drinking water more sustainable. This is important to protect customers and because the islands have major sustainability and expansion projects planned for 2025 and beyond. Making energy and drinking water production more sustainable on the islands is not only good for the climate, but it also makes energy and drinking water prices on the islands less dependent on volatile fuel prices. Expansions are needed to facilitate the growth on the islands.
The ACM sets these maximum tariffs based on the costs incurred by the producers and distributors, ensuring that these costs are not unnecessarily high. The fuel prices have a significant impact on the level of the tariffs because a lot of fossil fuels are currently still used to produce electricity and drinking water. Because the Ministry of Climate and Green Growth and the Ministry of Infrastructure and Water Management subsidise certain tariffs for electricity and drinking water, some prices that customers have to pay are lower than the maximum tariffs set by the ACM. It is not known at this time how much those subsidies will be.
Bonaire
On Bonaire, the maximum consumption tariff for electricity drops from about USD 0.36/kWh to about USD 0.31/kWh. The maximum standing charge for electricity rises by about 18% on average, with the amount of the charge depending on the importance of the connection. For the consumption of an average household (about 210 kWh), this means that a customer will spend about $65 per month on consumption of electricity from 1 January 2025. The standing charge is added to that, which is likely to be subsidised in 2025 as well. The cap on the pagabon (prepaid) tariff remains stable at around USD 0.64/kWh. This rate is also likely to be subsidised in 2025.
The maximum tariff for consumption of drinking water falls from about USD 4.17/m3 to about USD 4.06/m3. For an average household, this means a decrease of about USD 1.25 per month on the bill. The maximum standing charge for a household increases from USD 47.14 per month to USD 51.23 per month.
All these amounts do not yet include subsidies.
Saba
On Saba, the maximum consumption tariff for electricity increases from about USD 0.37/kWh to about USD 0.38/kWh. The maximum standing charge for electricity increases by around 5% for all connection categories. For the consumption of an average household, this means that a customer on Saba will spend about USD 80 per month on electricity consumption from 1 January 2025. The standing charge is added to that, which is likely to be subsidised in 2025 as well.
All these amounts do not yet include subsidies.
St. Eustatius
On St. Eustatius, the maximum consumption tariff for electricity drops from about USD 0.39/kWh to about USD 0.30/kWh. The maximum standing charge for electricity rises significantly. They double for all connection categories. For the consumption of an average household, this means that a customer will spend about USD 63 per month on electricity from 1 January 2025. The standing charge is added to that, which is likely to be subsidised in 2025 as well.
The maximum tariff for consumption of drinking water rises from about USD 8.29/m3 to about USD 11.30/m3. This is mainly due to leakage losses being higher than anticipated in 2022. For an average household, this means an increase of about USD 30 a month on the bill. The maximum standing charge for a household drops from USD 95.39 per month to USD 72.67 per month.
All these amounts also do not yet include subsidies.