Equal energy tariffs for BES no longer feasible

The outgo­ing Schoof Cabinet will not meet its earlier commit­ment to keep energy tariffs on Bonaire, St. Eustatius and Saba (so-called BES islands) in line with those in European Netherlands during its remaining term. The news follows acknowl­edgment that the Dutch Ministry of Climate and Green Growth has insuf­ficient budgetary space in 2026 to offset rising elec­tricity costs in Caribbean Netherlands.

This was confirmed in a formal response by Ed­die van Marum, caretaker State Secretary for King­dom Relations, to a parlia­mentary motion submitted by MP Don Ceder. Adopt­ed by the Second Chamber (House of Representatives) during the debate on the 2026 budget for Kingdom Relations (Chapter IV), it called on government to take steps before the end of the year to prevent sharp increases in energy tariffs for residents of Caribbean Netherlands.

In his letter to Parliament, Van Marum explained how government has attempted to give effect to the motion, while also outlining its limi­tations. According to him, discussions were held at various levels between his ministry and other involved departments immediately after the budget debate.

The Ministry of Climate and Green Growth is sys­tem-responsible for the energy framework in Ca­ribbean Netherlands and provides structural subsi­dies to reduce grid costs on Bonaire, St. Eustatius and Saba. Historically, these subsidies were sufficient to bring grid costs down to the level of European Nether­lands.

However, since 2025, grid costs in Caribbean Nether­lands have increased. Van Marum attributes this pri­marily to significant popula­tion growth on Bonaire and the resulting investments required from local utility companies. These higher costs are ultimately re­flected in consumer tariffs, which are set by the Dutch Authority for Consumers and Markets (ACM).

In 2025, the Ministry of Climate and Green Growth absorbed the cost increase on an incidental basis. For 2026, however, its budget does not allow for addi­tional funding beyond the existing subsidy. As a re­sult, maintaining grid tariffs at European Netherlands levels is no longer feasible within the current financial framework.

According to the state secretary, an additional 2.2 million euros per year would be required to close the gap. He emphasised that any decision to allo­cate such additional funds would fall to a future cabi­net.

To mitigate the impact on low-income households, additional support will re­main available in the form of an energy allowance. While this has been abol­ished in European Nether­lands, it will continue to ap­ply in 2026 on Bonaire, St. Eustatius and Saba.

In November 2025, 4 mil­lion euros in incidental funding was allocated from the Ministry of Social Af­fairs and Employment to the public entities, allowing local administrations to de­termine the target groups and subsidy amounts.

The energy allowance forms part of a broader 9.5 million euros package for temporary purchasing power measures in Carib­bean Netherlands in 2026. From 2027 onward, this amount will increase struc­turally to 10.8 million and will be used, among other things, to fund an income-dependent child benefit scheme aimed at strength­ening purchasing power in the region.

In his letter, Van Marum stressed that residents of Bonaire, Sint Eustatius and Saba deserve the same level of attention as residents in municipalities in European Netherlands. He added that it remains essential to continue monitoring and weighing the cumulative ef­fects of purchasing power measures for Caribbean Netherlands in the years ahead.

The announcement is like­ly to fuel renewed debate about cost-of-living pres­sures on the BES islands and the extent to which pol­icy commitments on equal­ity within the Kingdom can be sustained under existing budgetary constraints.

The Daily Herald.