WILLEMSTAD - Aqualectra has taken note of a proposal to lower electricity prices to provide the community with greater access to electricity consumption. Initially, this may appear to be an interesting solution to inventory and help alleviate a situation that people around the world are feeling the effects of. This situation results in an increase in electricity usage. However, several points should be taken into consideration when thinking about this direction to alleviate both the high heat and increased electricity bills towards the end of the month due to higher electricity usage.
An increase in demand signifies an increase in production. An increase in production does not necessarily mean that Aqualectra is earning more, as Aqualectra incurs additional expenses to produce more electricity. Furthermore, during this period, there is not much wind, which means that Aqualectra is utilizing conventional production units, leading to higher production costs compared to using wind-generated electricity. If an increase in demand is combined with a reduction in prices, it implies that Aqualectra has even less surplus to invest in production, distribution, and maintenance. A reduction in prices will have the effect of encouraging users to consume more electricity. However, this can have a counteractive effect since its costs will increase due to the increased electricity usage.
It's also important to note that the prices of water and electricity are regulated by the Bureau of Telecommunications and Post (BTP). In its price stipulation, the regulator takes into account that the prices of water and electricity need to be fair for both Aqualectra and the consumers. The regulator determines what the production costs could be and what Aqualectra needs to earn in the price to cover the necessary investments to ensure the production and distribution of water and electricity.
Aqualectra is working towards increasing the use of renewable energy in the near future, which is more cost-effective and contributes to lowering electricity prices. Additionally, there will soon be a more targeted approach to unregistered electricity and water consumption, which will also have positive effects on prices. In conjunction with this, Aqualectra has recently initiated a campaign to inform the community about conscious water and electricity usage, which will certainly contribute to more affordable end-of-month bills. Aqualectra will continue to work for the well-being of the community and will make every effort to ensure that the electricity and water we use are as affordable and sustainable as possible.