Kralendijk, 24 December 2024 – Water- en Energiebedrijf Bonaire N.V. (WEB) announces that the rates effective from January 1, 2025, have been determined and published. Due to reduced subsidies from the ministries, the costs for electricity and drinking water will increase.
Each year, the rates that the producer may charge WEB and the rates that WEB may charge customers are determined and announced by the Authority for Consumers & Markets (ACM). On December 6, 2024, the ACM determined these cost-covering rates, which WEB is authorized to charge as of January 1, 2025 (*).
To keep the rates affordable, WEB applies for subsidies for each rate year in accordance with the law. These subsidies are subsequently incorporated into the set rates, and the rates for all customers are determined.
Policy changes
For 2024, the ministries provided two types of subsidies. The first subsidy reduced the fixed electricity rates to the level of the European Netherlands and the fixed drinking water rates to below USD 10 per month. The second subsidy stream was intended for purchasing power improvement (poverty alleviation) on the island. For 2025, this second subsidy stream has been discontinued, resulting in lower subsidies and, consequently, higher fixed usage rates for customers.
For electricity, as part of purchasing power improvement efforts, the fixed usage rate was fully subsidized to zero in 2024 (and 2023) for connection categories up to 3*50 ampere, by the Ministry of Climate and Green Growth (KGG). Due to the policy changes, in 2025, the fixed usage rate will again be subsidized to the level of the European Netherlands. Additionally, this level will rise due to cost increases in the European Netherlands. For a connection with a capacity of 3*35 ampere, the fixed usage rate will increase from zero to USD 43.79 per month. For a connection with a capacity of 3*50 ampere, the rate will rise from zero to USD 88.36 per month. For larger connections, there will be an increase of 7.4%.
For drinking water, an additional subsidy was provided as part of poverty alleviation efforts, allowing the fixed usage rate to be set lower than the normal level of subsidization, specifically at USD 3.71 per month (instead of approximately USD 8 per month). Due to the policy changes, this additional subsidy will no longer apply, and the normal subsidy will be reduced. Consequently, for a connection with a size of ½ inch, the rate will increase from USD 3.71 to USD 16.34 per month. For larger connections, there will be an increase of 8.7%.
The consequences of these policy changes were timely identified and mapped out by WEB and escalated to the Public Body of Bonaire (OLB), which then raised the issue at the appropriate level in the Netherlands. Despite efforts, this did not result in any mitigation of the policy changes.
Relevant rate changes:
Periodic electricity rates
The fixed usage rate for connections up to 3*35 ampere is set at USD 43.79 per month (previously USD 0.00 per month).
The variable usage rate for electricity will decrease from USD 0.3550 per kWh to USD 0.3136 per kWh.
The rate for the prepaid connection (Pagabon) as of January 1, 2025, is set at USD 0.5088 per kWh. Because the fixed usage rate for small connections in 2024 was set at USD 0.00 per month, the prepaid connection (Pagabon) rate in 2024 was equal to the variable usage rate, namely USD 0.3550 per kWh (as of July 1, 2024).
Periodic drinking water rates
The fixed usage rate for the most common (small) connection will increase from USD 3.71 per month to USD 16.34 per month.
The variable usage rate will decrease from USD 4.165 per m³ to USD 4.055 per m³.
For customers receiving water via the water truck, the rate will increase from USD 4.600 per m³ to USD 4.928 per m³. This increase is partly due to the rise in fixed drinking water usage rates, which are factored into the rate.
Billing
The new periodic rates for electricity and drinking water will be applied to invoices for the consumption period starting in January 2025. For customers using Pagabon and the water truck, the new rates will be visible immediately from January 1, 2025.
(*) As of July 1, 2025, depending on developments in fuel costs, the variable usage rate for electricity and the Pagabon rate will be revised again.
One-time connection fees for electricity and drinking water
The one-time connection fees for small connections up to 25 meters are set at USD 1,793.95 for electricity and USD 1,221.38 for drinking water. This represents an increase of 2.5% compared to 2024.
