Multimillion subsidy lowers Bonaire’s drinking water costs, but lower bill not guaranteed
KRALENDIJK – The eight million euros the Netherlands is investing in drinking water production on Bonaire will save an average of about twenty cents per cubic meter in costs that would otherwise end up in water rates, according to WEB. But that does not mean residents will automatically see their water bill drop by the same amount.
The Netherlands is contributing to the replacement and expansion of the seawater intake at the drinking water plant in Hato. The installation is more than forty years old and needs to be replaced. At the same time, capacity is being expanded to cope with the sharply increased demand for drinking water.
Because the Netherlands is paying a significant part of the investment, WEB does not have to recover those costs in full through its rates.
According to the utility company, the contribution means that, averaged over several years, about twenty cents per cubic meter less in costs ends up in the rates.
No guarantee of a lower bill
However, WEB is cautious about concluding that the water bill will actually fall as a result.
The price of drinking water is determined by several factors. Electricity costs in particular play an important role, because a great deal of energy is needed to process seawater into drinking water using reverse osmosis.
According to WEB, fluctuations in energy and fuel prices can in themselves lead to substantial increases or decreases in production costs.
The Dutch contribution should therefore be seen mainly as costs that no longer have to be recovered through the drinking water rate. Without the subsidy, the bill would thus be higher than with the subsidy.
Major investments
Moreover, the eight million euros is not the only investment WEB has to make in the coming years.
The old seawater intake is being replaced and enlarged. In addition, money must be spent on expanding the installations used to purify and treat the seawater.
WEB expects demand for drinking water to continue to rise. Production capacity currently stands at 9,600 cubic meters per day and during peak periods this year was already averaging 9,300 cubic meters.
The projects to expand drinking water production will be carried out in 2027 and 2028.
Growth costs money
This creates a difficult balancing act for WEB. The company must invest enough to stay ahead of population growth and rising demand, but large investments ultimately also feed through into the rates.
According to WEB, building too much capacity before it is needed would mean that current users pay for installations that will not be fully used for the time being.
At the same time, WEB cannot wait too long. If water consumption continues to grow at the same pace, the company expects to need another expansion as early as 2029 or 2030.
The Dutch cabinet presents the investment of eight million euros as a measure intended to contribute to more affordable drinking water. WEB puts it more cautiously: the subsidy reduces costs, but how much a household ultimately notices on its bill also depends on other developments.
