KRALENDIJK — New rates for electricity and drinking water on Bonaire will take effect on July 1. Fixed monthly costs are going down, but the price per kilowatt-hour of electricity is going up. The Water and Energy Company Bonaire (WEB) announced this Tuesday in a press release.
Fixed Rates Down
The fixed monthly charge for electricity is being reduced by 25%. For most connections (up to 3×35 Amperes), this will drop from $47.80 to $35.85 per month.
The fixed rate for drinking water is also falling. For a standard connection (½ inch), this will decrease from $11.60 to $3.54 per month.
This reduction is made possible by additional subsidies from the Ministry of Economic Affairs and Climate Policy and the Ministry of Infrastructure and Water Management. During the previous rate review on January 1, there was insufficient budget for this.
Electricity Price Rising Due to US-Iran Conflict
The variable electricity rate is increasing from $0.3868 to $0.5021 per kWh. The cause is the higher diesel price resulting from the conflict between the United States and Iran. Energy company ContourGlobal Bonaire (CGB) uses diesel for power generation, which is driving up costs.
WEB and CGB have influence over only 32% of the rate. The remaining 68% depends on the global oil price. According to WEB, this underscores the importance of the wind turbine project, which will reduce Bonaire’s dependence on fossil fuels.
Pagabon Rate Up 9.6%
For customers using Pagabon, the rate will rise from $0.6062 to $0.6642 — an increase of 9.6%. The lower fixed costs partially offset this increase.
Effective Date
Pagabon customers will see the new rate take effect immediately from July 1. Other customers will see the change reflected on the invoice for the billing period starting in July.
Higher Electricity Rates on Saba and St. Eustatius as Well
Rising oil prices are not only affecting Bonaire, but the entire Caribbean Netherlands. This follows from an announcement by the Authority for Consumers and Markets (ACM), which sets the maximum electricity rates for the Caribbean Netherlands on an annual basis.
On St. Eustatius, the maximum variable rate will rise from approximately $0.33 to $0.38 per kWh. As a result, the average household will pay around $12 more per month.
On Saba, the rate will increase from approximately $0.48 to $0.55 per kWh. For the average household, this amounts to an increase of roughly $17 per month.
The fixed monthly standing charge will remain unchanged on both islands. This amount is subsidized by the Ministry of Economic Affairs and Climate Policy to bring it in line with the average level in the European Netherlands.
The more electricity you actually use, the more you will pay for it.
