The Netherlands Authority for Consumers and Markets facilitates further development of sustainable energy production on the BES islands

The Netherlands Authority for Consumers & Markets (ACM) has established the 2023 maximum rate for electricity and drinking water on the islands. The ACM does this yearly and ensures that the production companies have the sufficient financial power to invest in developing sustainable electricity and drinking water production. This is important, as major sustainability projects have been scheduled on all of the islands for 2023 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, but it also ensures energy and drinking water rates on the islands are less dependent on turbulent global fuel prices.

The ACM sets these maximum rates based on the costs incurred by the production and distribution firms. Due in part to the rise in fuel prices, the maximum rate for electricity and drinking water on Bonaire, Saba and St Eustatius will rise slightly as of the 1^st of January 2023. However, in practice, consumers will pay less for water and electricity as the Ministry of Economic Affairs and Climate Policy and the Ministry of Infrastructure and Water Management has promised substantial subsidies. The ministries promised [1] that consumers would not have to pay any of the fixed costs for electricity grid management in 2023, known as the standing charge. In other words, consumers will pay no fixed costs whatsoever, and the only bills they will pay will be based on the variable amounts of electricity consumed. Furthermore, a 50% subsidy will apply to any proportion of the variable costs that exceeds USD 0.38 per kWh. In 2023, drinking water rates will also be subsidized based on the BES Temporary Subsidy Scheme 2018-2024.

Saba

On Saba, the maximum consumer rate for electricity will decrease from around USD 0.52 per kWh to around USD 0.43 per kWh. In practice, however, the subsidies mean that the actual maximum rate for consumers on Saba will be USD 0.41 per kWh. The standing charge will also be fully subsidized. All of this means that as of the 1^st of January 2023, consumers on Saba will pay an electricity bill of around USD 85 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 0.43 per kWh to around USD 0.50 per kWh. In practice, however, the subsidies mean that the actual maximum rate for consumers will be around USD 0.44 per kWh. The standing charge for electricity will be fully subsidized, so consumers on St Eustatius will not be required to pay anything for their electricity connection in 2023. All of this means that as of the1st of January 2023, consumers will pay an electricity bill of around USD 92 per month after the subsidy has been taken into account (based on average consumption per household).

The maximum rate for drinking water will decrease from around USD 8.62 per m3 to around USD 5.79 per m3. This means that the water bill for an average household will decrease by around USD 28 per month. The standing charge for a household will rise from 93.76 USD per month to 98.78 USD per month. To these amounts, subsidies will apply to lower the actual amounts on the invoices.

Bonaire

On Bonaire, the maximum consumer rate for electricity will rise from around USD 0.42 per kWh to around USD 0.43 per kWh. In practice, however, the subsidies mean that the actual maximum rate for consumers will be around USD 0.41 per kWh. The standing charge for electricity will be fully subsidized, so consumers will not be required to pay anything for their electricity connection in 2023. All of this means that as of the 1st of January 2023, consumers will pay an electricity bill of around USD 85 per month after the subsidy has been taken into account (based on average consumption of around 210 kWh per household).

The maximum rate for the Pagabon (pay as you go) will increase from around USD 0.63 per kWh to around USD 0.68 per kWh. The subsidies also apply to this rate, meaning the actual maximum rate will be around USD 0.41 per kWh.

The maximum rate for drinking water will rise from around USD 3.74 per m3 to around USD 3.91 per m3. This means that the water bill for an average household will rise by around USD 1.70 per month. The standing charge for a household will rise from 41.24 USD per month to 43.96 USD per month. To these amounts, subsidies will apply to lower the actual amounts on the invoices.

[1] For more information, see Letter to Parliament on further elaboration of the temporary energy price cap | Parliamentary Paper | Rijksoverheid.nl

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