Oranjestad- The Authority for Consumers and Markets (ACM, Autoriteit Consument en Markt) has established the new (maximum) tariffs for electricity and for drinking water on Sint Eustatius. The tariffs determine the prices STUCO can maximally charge consumers effective from January 1st, 2018. The ACM also re-establishes the connection and reconnection tariff for 2018.
In pursuance of the Electricity and Drinking Water Act BES the ACM has the duty of establishing break-even tariffs. This implies that the ACM calculates what it costs STUCO to produce electricity and drinking water and to supply it to the consumer.
Taking the affordability of electricity and drinking water for, in particular, small households into account, the Ministry of Economic Affairs and Climate Policy and the Ministry of Infrastructure and Water Management made a subsidy available to reduce the fixed distribution tariff for electricity and for drinking water.
Changes in tariffs
On Sint Eustatius the variable distribution tariff for electricity decreases from USD 0.30 per kWh to USD 0.28 per kWh due to the commissioning of phase two of the solar park. The fixed distribution tariff for electricity increases by 9% due to the increased costs of STUCO for the distribution of electricity. The Ministry of Economic Affairs and Climate Policy made a subsidy available to keep the fixed distribution tariff for the two smallest connection capacities at the same level as in 2017.
For drinking water the variable distribution tariff on Sint Eustatius increases from USD 7.70 to USD 8.34 per cubic metre of drinking water. With the subsidy of the Ministry of Infrastructure and Water Management the fixed distribution tariff effective from January 1st, 2018 remains USD 6.85 per month. The underlying costs of the network per connection increased. This is caused by the fact that STUCO incurred costs (invested) in the production of drinking water and the fact that the costs for the maintenance of the drinking water network increased.
Electricity and Drinking Water Act BES
On July 1st, 2016 the Electricity and Drinking Water Act BES took effect. There are four types of tariffs: the connection tariff, the reconnection tariff (after having been disconnected), the fixed and the variable distribution tariff. On July 1st, 2017 the ACM first established these maximum tariffs for Sint Eustatius.