Decision production price electricity 2017 SEC (Caribbean Netherlands)
The Authority for Consumers and Markets (ACM) stipulated the production prices of electricity and drinking water in the Caribbean Netherlands. These prices apply as of January 1st, 2017. The production rate is determined by calculating what it costs to produce one cubic meter of drinking water or one kilowatt hour of electricity. This specific decision regards the producer of electricity on Saba: Saba Electric Company (SEC).
Consumers and businesses in Bonaire, Sint Eustatius and Saba will not notice any change yet in the rates they pay for electricity and drinking water until ACM also stipulates the distribution rates. ACM strives to do that by the summer of 2017. The production prices are a part of this distribution rates. The distribution rates are the rates that customers (consumers and businesses) pay to distribution companies like WEB, STUCO or Saba Electric. ACM is currently consulting with the Ministry of Economic Affairs (electricity) and the Ministry of Infrastructure and Environment (drinking water) on the determination of the distribution rates, the amount of resources and the impact of the new rates on the consumer.
How are the rates determined?
ACM has the task to stipulate rates for electricity and drinking water. This task is specified in the law of electricity and drinking water BES. As of July1st, 2016 ACM started a research to gain insight into the costs of production and distribution of drinking water and electricity. Hereby ACM cooperates with WEB, ContourGlobal, STUCO and Saba Electric. ACM also consults with consumers organizations Unkobon, BBE, Bonhata and BHG. The investigation into the cost of utilities has led to a realistic insight of the production and distribution costs. Based on these production costs ACM stipulated as of January 1st, 2017, the production price of electricity and drinking water.
Once ACM also stipulates the distribution rates, consumers will pay a fixed amount a month for electricity and a fixed amount for drinking water (the fixed distribution rate per month). In addition consumers must, as is currently the case, pay for the amount of drinking water or electricity they consume per month variable amount per month, based on the production rate).