Published On: Wed, Feb 13th, 2013

Utility company gets to recover costs

AqualectraWILLEMSTAD  - The Curacao utility company, Aqualectra, is allowed to recover fuel costs amounting almost to 62 million guilders. They have until March 2014 to do this.

It was necessary to take this measure because it can guarantee the solvability of the Aqualectra. The supervisor on the energy sector, Bureau Telecommunication Post and Utilities (BPTU), recently gave an explanation of the structure of the utility rates. The prices for water and electricity increased in February with 3.7 and 10.5 percent respectively. This increase is due to an adjustment of the fuel clause. The utility rates consist of the basic rates and the fuel clause. The costs for personnel, building, etc., are included in the basic rate. The fuel clause is based on the fuel costs, the recovery and correction. The utility company passes on the fuel costs to the customer. The ‘recovery’ regards the fuel costs that weren’t passed on to the customer in 2011 and 2012.  The utility company will recover 61.84 million guilders over a period of twenty months, as from August 2012.

The third component is the correction, a subsequent calculation of the actual production costs for electricity and water. According to Aqualectra-director Darick Jonis, this correction should have become effective as from June 1st 2012. BTPU had not implemented this adjustment. As a result, Aqualectra is also allowed to recover the difference as from June 2012 until the end of this year. In theory, owing to the correction factor, it’s possible that the customer pays less for water and electricity in the following month if the utility company produces cheaper through wind energy. However, this is still in the future considering Aqualectra is allowed to recover the costs until December.

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