Curaçao, 2 November 2015

The Bureau Telecommunication & Post (to be referred to hereinafter as: the Bureau) by means of this press release gives further information on the background of the recently adapted tariffs for water and electricity as per 1 November 2015, as resolved by the Council of Ministers. This tariff adjustment concerns the monthly adaptation of the so-called fuel clause. This is monthly adapted due to the changing prices in oil products, as well as the fluctuating scope of wind- and solar energy. The prices are based on forecasts for the coming month in combination with final calculations of the preceding month.

Adaptation of the tariffs for electricity and water

The fuel clause for electricity increases as per 1 November by 2 cents per kWh. This means that the electricity tariff for all tariff groups increases by 2 cents per kWh. Thus the household tariff up to 250 kWh increases from NAF. 0,4774 per kWh to NAF.0,4974 per kWh, and the business tariff increases from NAF.0,5871 per kWh to NAF.0,6071 per kWh.

The fuel clause for water slightly increases as per 1 November with approximately 9 cents per m3. This implies that the water tariff for all tariff-groups increases. Thus the household tariff up to 9 m3, increases from NAF.7,3858 per m3 to NAF.7,4755 per m3, and the business tariff changes from NAF.12,9058 per m3 to NAF.12,9955 per m3.

Explanation new tariffs

The change in the price of electricity in November is primarily the result of a positive correction for the month of September. During the month of September more use of production units that are based on more expensive fuels was made for the production of electricity than had been foreseen for said month, which resulted in a less favorable production mix.

With regard to water the slight price increase was mainly caused by the positive correction of electricity for the month of September, since the production of water is based on the use of electricity.

Based on the definitive calculations of the recoveries of the fuel costs and the operational costs for the years 2012 and 2013, it was decided to extend the present recovery component of NAF.0,0520 per kWh for electricity and approximately NAF.0,4000 per m3 water for a remaining period of 6 months.