The Authority for Consumers and Markets ( Autoriteit Consument & Markt (ACM)) has set the maximum tariffs for the distribution of electricity in the Caribbean Netherlands. The tariffs will apply as of July 1st, 2021.
The ACM sets maximum tariffs for the production and distribution of electricity in the Caribbean Netherlands. The distributors set the tariffs which they actually charge on the basis of these maximum tariffs. In this process, the utility companies also include any subsidies on the electricity tariffs. For instance, due to corona, the costs of the network will be fully subsidized in 2021 and no network tariffs will be charged to customers.
The ACM will adjust the maximum tariffs for the usage of electricity as of July 1st in order to be able to take into account the development of the prices for fuel that is required to produce electricity. Fuel prices plummeted in 2020. However, in 2021 fuel prices are rising again. Therefore, the maximum variable usage tariffs will rise in all islands on July 1st, 2021.
The maximum variable usage tariff for Saba will rise from USD 0.2851/kWh to USD 0.3692/kWh. For the usage of an average household on Saba, this means a rise of approximately USD 21.00 USD per month.
This rise is not only due to the rise caused by fuel prices, but in part also due to a post calculation related to the solar park which was put into service. In retrospect, it turns out that Saba Electric Company (SEC) generated insufficient income relative to the costs which had to be incurred at the time. This one-time post calculation regards approximately one-third of the rise of the maximum usage tariff and is now fully offset.