THE COMMON MAN IS PAYING FOR A WAR?
By: JJosephaNews
Reading Time: 3:00 mins.
Twitter: @JJosephaNews
Willemstad, Curacao. According to Curacao Bureau Telecommunicatie en Post, from Tuesday, April 26, 2022, the regulated rate of petrol and diesel in Curaçao will increase. The rate for electricity and water will also increase with effect from Sunday 1 May 2022. The Bureau Telecommunication and Post (BT&P) reports this in its monthly press release. BT&P monitors the price developments of oil products and utilities.
FUEL PRODUCTS RATE CALCULATION
The tariff structure of Mogas 95, Gasoil LSD, LPG 20 and LPG 100 has the elements 1. Purchase price, 2. Import tax LSD, 3. Guarantee fuel supply (1a) 4. Guarantee fuel supply (1b) 5. Margin Curoil, 6. Excise duties, 7 Surplus/Deficit (Recovery), 8. Cross subsidy, 9. Wholesale O.B. 6%, 10. Dealer Margin, and 11. Retail O.B. 6%. For some elements – temporarily or otherwise – the zero rate applies. The wholesale rate includes the first nine elements while the retail rate includes all elements
The purchase price, with which the calculation begins, is determined monthly for the following month, based on the available fuel supply at the end of the previous month. So: the purchase prices used for the month of May 2022 are in principle based on the available fuel stock at the end of March 2022. In the event that the stock information provided by Curoil is insufficient, recent international price quotations are used. These purchase prices are also checked against international price quotations. Due to this delay, the differences between the regulated purchase price and the actual purchases in a particular month are always settled afterwards via the 'Surplus/Deficit' element.
The end-user tariff for Mogas 95 increases due to a slight increase in the purchase price and a sharp increase in the correction of the surplus/deficit component. The latter is mainly due to the processing of the half of the increase in the purchase price of last month. The end-user tariff for LSD is increasing mainly as a result of a sharp increase in the purchase price in line with the international price quotation (Platts). In order to avoid an even greater rate fluctuation for LSD lump sum, the purchase price increase is again implemented in two steps through a negative correction in the surplus/deficit component. It also applies to LSD that only half of the increase in the purchase price from last month has now been processed. To further mitigate the price increase for Mogas and LSD, it has been decided to spread the shortages from previous months over several months. However, these mitigating measures will still have to be corrected in the coming months.
TRANSLATION: [Felicity: 20% - Fidelity: 80% ]
WATER AND ELECTRICITY RATE CALCULATION
The tariff structure for water and electricity has two components: the basic tariff and the fuel clause. The electricity fuel clause consists of two elements: electricity purchase and fuel costs.
The 'purchases' are based on the price of energy supplied by third parties, such as wind energy and solar energy, and the fuel costs relate to the costs of energy generation by Aqualectra itself. The fuel clause for water also consists of two elements, being 'purchase' based on the price of water supplied by a third party and electricity costs for water production by Aqualectra itself.
However, the deployment of the different production means varies every month, also known as 'the production mix'. The level of the fuel clause is therefore determined monthly by BT&P on the basis of Aqualectra's forecast of what the production mix will be, in this case for the month of May 2022. If one month later it appears that the component was too high or too low, it will be corrected. In this case, this concerns the month of March 2022.
The base rate for both water and electricity is determined by BT&P once a year. This rate includes all other (fixed) costs for the production of electricity and water and all costs for their distribution and delivery, such as personnel costs, maintenance costs, depreciation, etc.
The increase in electricity and water rates is the result of higher average fuel costs for the production of electricity and higher electricity costs for the production of water, respectively, the forecast production mix and a lower correction factor for March 2022.
TRANSLATION: [Felicity: 10% - Fidelity: 90% ]
APPROVAL AND DETERMINATION
The BT&P advises the Council of Ministers (RvM) on the new rates. Only after the RvM approves the proposal, does the Minister of Economic Development, who is also responsible for energy affairs, determine the rates. These are the maximum rates that may be used for a month. With this procedure, which takes international and local factors into account, regulator BT&P monitors the continuity and fairness of the supply of fuel, water and electricity to the local population in an independent, transparent manner.
Through this publication, the Government of Curaçao announces that the rates for electricity and water shall be adjusted as per 1 May 2022. The current and new rates are listed in the table below.
TRANSLATION: [Felicity: 10% - Fidelity: 90% ]
OVERALL TRANSLATION: FELICITY:10% / FIDELITY:90%
PAPIAMENTU/DUTCH : ENGLISH
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