The Netherlands Authority for Consumers & Markets (ACM) has established the 2024 rate caps for electricity and drinking water on the islands. The ACM sets these maximum rates every year, and one of the key criteria is ensuring the supply firms have sufficient financial power to invest in developing sustainable electricity and drinking water production, without consumers paying too much. This is a vital issue to protect consumers, and because major sustainability projects have been scheduled on all of the islands for 2024 and beyond. In the ACM’s view, sustainable production of energy and drinking water on Bonaire, Saba, and St. Eustatius is not only good for the climate, it also ensures energy and drinking water rates on the islands are less dependent on turbulent global fuel prices.

The ACM sets these rate caps based on the costs incurred by the production and distribution firms, making sure that these costs are not unduly high. The level of the rates depends to a significant extent on fuel prices because the production of energy and drinking water currently still involves a large amount of fossil fuels. As the Ministry of Economic Affairs and Climate Policy and the Ministry of Infrastructure and Water Management subsidize particular electricity and drinking water rates, the prices charged to consumers are lower than the rate caps set by the ACM.

Saba

On Saba, the maximum consumer rate for electricity will rise from around USD 0.37 per kWh to around USD 0.38 per kWh. The maximum standing charge for electricity will fall by approximately 4% for all types of connections. The standing charge for electricity is subsidized on Saba as well. All of this means that as of 1 January 2024, consumers on Saba will pay an electricity bill of around USD 80 per month after the subsidy has been taken into account (based on average consumption per household).

St. Eustatius

On St. Eustatius, the maximum consumer rate for electricity will rise from around USD 0.37 per kWh to around USD 0.40 per kWh. The maximum standing charge for electricity will fall by approximately 30% for all connection types. The standing charge for electricity is subsidized on St. Eustatius as well. All of this means that as of 1 January 2024, consumers will pay an electricity bill of around USD 83 per month after the subsidy has been taken into account (based on average consumption per household).

The maximum rate for drinking water will rise from approximately USD 5.79 per m3 to approximately USD 8.29 per m3. This is due primarily to the leakage losses of 2022, which were higher than anticipated. This means that the water bill for an average household will rise by around USD 25 per month. The maximum standing charge per household will decrease from USD 98.78 to USD 95.39 per month. These drinking water charges are still exclusive of subsidies

Bonaire

On Bonaire, the maximum consumer rate for electricity will increase from around USD 0.35 per kWh to around USD 0.36 per kWh. The maximum standing charge for electricity will rise by around 15% on average, whereby the level of the rate depends on the connection capacity. The standing charge for electricity is subsidized on Bonaire. All of this means that as of 1 January 2024, consumers will pay an electricity bill of around USD 75 per month after the subsidy has been taken into account (based on average consumption of approx. 210 kWh per household).

The cap for the Pagabon (pay as you go) rate will fall, from around USD 0.68 per kWh to around USD 0.64 per kWh. Because of the subsidies, this cap will also be lower in practice.

The maximum rate for drinking water will rise from approximately USD 3.91 per m3 to approximately USD 4.17 per m3. This means that the water bill for an average household will rise by around USD 2.50 per month. The maximum standing charge per household will rise from USD 43.96 to USD 47.14 per month. These drinking water charges are still exclusive of subsidies.

RCN