Saba News News and Information from Saba Island, Dutch Caribbean
Effective January 1, 2026 | Six-year regulatory period
The Netherlands Authority for Consumers and Markets (ACM) has established a new regulatory method for setting maximum electricity and drinking water tariffs on Bonaire, St. Eustatius, and Saba. This updated framework introduces stronger incentives for sustainable electricity production while maintaining consumer protection. The new regulatory method will govern tariff-setting from 2026 through 2031, providing a stable framework for utility planning and investment in sustainable infrastructure.
What’s Changing
The new method replaces the current regulatory framework, which has been in effect since 2020. Key updates include:
Enhanced Sustainability Incentives
Utility companies will receive additional encouragement to transition from oil-based electricity generation to renewable energy sources. While production method choices remain with the utility companies, the ACM has identified significant opportunities for improvement across all three islands.
Continued Oil Price Adjustments
The ACM will continue adjusting electricity tariffs semi-annually (July 1st) to reflect volatile oil prices, which remain a major cost component. Drinking water tariffs will not receive interim adjustments, as oil prices have minimal impact on water production costs.
Current State of Renewable Energy
Sustainable electricity production varies across the islands:
- Bonaire: ~25% renewable (wind and solar)
- St. Eustatius: ~50% renewable (solar)
- Saba: ~30% renewable (solar)
These figures demonstrate substantial room for growth in renewable energy adoption. Increased sustainable electricity production delivers multiple advantages:
- Price Stability: Reduced exposure to volatile international oil markets
- Lower Long-term Costs: Decreased dependence on expensive fossil fuels
- Environmental Protection: Reduced carbon emissions and climate impact
- Energy Security: Greater independence from imported fuel sources
ACM
