The Authority for Consumers and Markets (ACM) has established a new method for determining the maximum rates for electricity and drinking water in Bonaire, Sint. Eustatius, and Saba. With this new method, ACM provides electricity producers with an additional incentive to produce sustainably. The new method will take effect on January 1, 2026, and will last for six years.
ACM sets annual maximum rates for the production and distribution of electricity and drinking water in the Caribbean Netherlands. ACM does this based on a regulatory method that outlines the rules by which ACM determines the maximum rates. The current method was valid for six years and began in 2020. Therefore, a new regulatory method is needed starting in 2026.
Also in the new regulatory period, ACM will adjust the maximum rates for electricity every July 1 based on the development of oil prices. This interim adjustment is made by ACM because the highly fluctuating oil price is a significant component of electricity rates. Since the oil price has less influence on the costs of drinking water, ACM will not make interim adjustments to drinking water rates in the new regulatory method.
Due to the high and volatile oil prices and the adverse effects of electricity production with oil on the climate, ACM encourages utility companies to produce more sustainably. The choice of how utility companies generate electricity ultimately lies with the utility companies, but ACM believes there is still sufficient room for sustainability. Currently, the share of sustainable electricity production in Bonaire is about 25% (wind and solar), in Sint. Eustatius 50% (solar), and in Saba 30% (solar). Consumers and other users benefit from more sustainable electricity production in the form of rates that are less dependent on high and fluctuating oil prices and a better climate.