WILLEMSTAD.- From Tuesday, January 29th , 2019, the regulated rate of diesel and gas will decrease on Curaçao. Water and electricity will also become cheaper, starting from Friday 1st February 2019. This is reported by the Bureau Telecommunication and Post (BT & P) in its monthly press release about this. BT & P supervises the price developments of oil products and of utilities.

Tariff calculation fuel products

The tariff structure of Mogas 95, Diesel LSD, LPG 20 and LPG 100 knows the elements

1. 
   

2. Purchase price, 2. Import tax LSD, 3. Curoil Margin, 4. Excess, 5. Surplus / Deficit (Recovery), 6. Cross subsidy, 7. Wholesale O.B. 6%, 8. Dealer margin and 9. Retail O.B. 6%. For some elements the zero rate applies - temporarily or otherwise. The wholesale rate includes the first seven elements while the retail rate all nine elements.

3. 
   

The purchase price, with which the calculation starts, is monthly for the next month determined on the basis of the purchase invoices of Curoil of the previous month. So the Purchase prices that are used for the month of February are based on Curoil's purchase invoices for the month of December. These purchase prices are also checked against the international price quotations. Account is also taken of any other to the purchase-related costs (e.g. inspection costs). Via the 'Surplus / Deficit' element due to these 2 months delay, the differences between the regulated and the later purchase price and the actual purchases in a given month.

During December, neither for Mogas 95 nor Diesel LSD purchases from Curoil done. For Gasoil LSD this is customary because of the available storage and on it customized import of this product. The end-user tariff decline for Gas Oil LSD is therefore mainly the result of a decrease in the correction in the surplus / deficit component. With regard to Mogas 95 it has been decided to purchase the regulated purchase price downwards on the basis of the development of the international price quotation.

Tariff calculation water and electricity

The tariff structure for water and electricity has two components: the basic rate and the fuel clause. The fuel clause consists of two elements: purchasing electricity and fuel costs. The 'purchases' are based on the price of energy that third parties supply, such as wind energy, solar energy and the CRU. The fuel costs concern the costs of energy generation by Aqualectra itself. However, every month the commitment of the different varies means of production, also called 'the production mix'. The height of the fuel clause is therefore determined monthly by BT & P based on Aqualectra's prognosis of what the production mix will be, in this case for the month of February. As a month later, it appears that the component was too high or too low, it is corrected. So, in this case the month of December.

Approval and determination

The BT & P advises the Council of Ministers (RvM) on the new rates. Only after the The RvM approves the proposal, according to the Minister of Economic Development in charge of energy matters, the rates fixed. These are then the maximum rates that a month can be handled for a long time. With this procedure, which includes international and local factors takes into account, supervised regulator BT & P in an independent, transparent manner the continuity and fairness of the supply of fuel, water and electricity to the locals.