SABA/ST. EUSTATIUS--The fuel needed to produce electricity has become more expensive. That is why the Authority for Consumer and Markets (ACM) has increased the maximum rate that distributors Water and Energy Company WEB N.V. in Bonaire, St. Eustatius Utility Company N.V. STUCO and Saba Electric Company (SEC) N.V. may charge per kilowatt hour.
How much more the distributors will actually charge, these companies can determine themselves. However, these tariffs may not be higher than the cost-effective tariff set by the ACM.
The ACM has, based on the Law Electricity and Drinking Water BES, among other things the task to set rates for electricity and drinking water. This is the maximum rate a distributor may charge its customers.
The ACM sets these rates each year effective January 1. The cost-effective variable usage fee for electricity can also be modified by the ACM effective July 1 of each year.
The variable usage rate is the rate customers pay for consuming electricity and is therefore the price per kilowatt hour. A large part of this rate consists of the cost of fuel needed to produce electricity. Because of the increase in fuel cost, as a result of the increase in oil prices, also the variable usage increases the rate of electricity. If fuel cost drops, the ACM will use the same process to revise the price downwards.
On Bonaire the ACM also adjusts the Pagabon-tariff. In that variable rate the fuel cost is also processed.
