WILLEMSTAD – Curaçao should consider introducing a permanent system under which electricity customers automatically receive compensation for prolonged or repeated power interruptions, according to MFK Member of Parliament Ishahier Felipe Monte.
Monte has asked Prime Minister Gilmar Pisas to consider instructing the Regulatory Authority of Curaçao (RAC) to investigate such a system following the latest series of rotating power outages by Aqualectra.
Rather than focusing exclusively on compensation for the current electricity crisis, Monte wants Curaçao to establish clear rules determining when consumers are entitled to compensation when electricity service is interrupted.
The MP proposes that criteria take into account both the duration and frequency of interruptions. This would mean that several outages within a defined period could potentially qualify a customer for compensation, rather than eligibility depending exclusively on one lengthy interruption.
Monte points to systems used in the United Kingdom and the Netherlands as examples that Curaçao could study.
In the United Kingdom, energy regulator Ofgem uses Guaranteed Standards of Performance, under which electricity distribution operators can be required to make payments when specified service standards are not met.
Monte also points to the Netherlands, where compensation can apply under certain conditions following electricity interruptions and where, according to the MP, customers do not necessarily have to initiate the compensation process themselves.
He stresses that Curaçao should not simply copy either system because the island has a different electricity network, economic environment and operating reality.
Instead, he wants RAC to examine whether elements of those models could be adapted to Curaçao.
Monte also points to a local precedent. After blackouts in December 2020 and January 2021, Aqualectra introduced its “Danki na Bo” program to compensate qualifying customers. Unlike the automatic system Monte is now proposing, eligible customers had to register for that compensation.
The MP says a permanent compensation mechanism should also remain separate from claims involving actual material damage.
A household that loses electricity for several hours, for example, could potentially receive compensation for the interruption itself. If the same outage damaged an appliance or caused another demonstrable loss, the customer would retain the ability to pursue a separate damage claim under the applicable procedures.
Monte acknowledges that Aqualectra's financial position would have to be considered when determining the amount and structure of any compensation.
His proposal follows renewed scrutiny of Curaçao's electricity system after Aqualectra was forced to implement rotating outages because several conventional generating units were unavailable and insufficient wind generation left the utility unable to meet demand at certain times.
Monte notes that independent investigations into Curaçao's electricity system have previously been conducted following major outages, including work involving ENGIE/Laborelec and the island's regulator. He argues that technical improvements should now be accompanied by stronger consumer protection.
The parliamentarian has asked Pisas whether he is prepared to have RAC investigate a permanent compensation framework and what, if anything, the government would need from the Curaçao Parliament to strengthen consumer protection when electricity supply is interrupted.
According to Monte, the current debate should therefore go beyond restoring generating capacity. It should also determine what rights consumers have when the electricity service they pay for repeatedly becomes unavailable.