The ACM focuses on accelerating the sustainability of electricity production
The Netherlands Authority for Consumers and Markets (ACM) has established a new method for the determination of the maximum tariffs for electricity and drinking water on Bonaire, St. Eustatius and Saba. With this new method, the ACM is giving the producers of electricity an additional incentive to produce sustainably. The new method takes effect on 1 January 2026 and continues for six years.
The ACM sets maximum tariffs each year for the production and distribution of electricity and drinking water in the Caribbean Netherlands. The ACM does this on the basis of a regulatory method. It contains the rules by which the ACM always sets the maximum tariffs. The current method was valid for six years and took effect in 2020. Therefore, a new regulatory method is required from 2026 onwards.
In the new regulatory period, the ACM also continues to adjust the maximum electricity tariffs on 1 July each year based on the development of the oil price. The ACM makes this interim adjustment because the highly volatile oil price is an important component of electricity tariffs. Because the oil price has less impact on the cost of drinking water, the ACM is again not making any interim adjustments to drinking water tariffs in the new regulatory method.
Due to the height and volatility of the oil price and the adverse effects of oil-based electricity production on the climate, the ACM encourages utility companies to produce in a more sustainable manner. The choice of how the utility companies generate electricity is ultimately up to the utility companies themselves, but the ACM believes there is still plenty of room for improvement in terms of sustainability. Currently, the share of sustainable production of electricity on Bonaire is approximately 25% (wind and solar), on St. Eustatius 50% (solar) and on Saba 30% (solar). Consumers and other buyers benefit from a more sustainable production of electricity in the form of tariffs that are less dependent on high and fluctuating oil prices and a better climate.