Our organisation
The strategy that RAC applies to the various sector-related spheres of activity that its regulatory authority covers, varies per sphere of activity.
Strategy Telecommunications
The strategy in the sector of telecommunications is based on the principle of “managed competition”. This implies a liberalized market in which strict prescriptions by regulation are applicable in order to enable an adequate participation in the market. This translates into a strategy oriented to:
- The availability of high quality services in the Telecommunications and ICT
- Promoting the competitive positioning of providers
- Efforts to attract investors
- The guarantee of a minimum package of telecommunications services based on affordability
- The guarantee of accessibility to the infrastructures
- An optimum and particularly efficient use of the frequency spectrum
Strategy Post
The regulation of the postal sector by RAC is oriented to stimulating efficiency and market orientation in order to balance the disadvantages of the monopolistic postal market.
Due to the monopoly there is insufficient competition to neutralize these advantages naturally. Where competition is possible, attempts are made to let market dynamics run their course in accordance with the framework of the existing National Ordinance on the Post 1998, (P.B. 1997, no. 319) and additionally by means of amendments for adaptations of the same. This translates into a strategy which is oriented to:
- The guarantee of a minimum postal service package based on affordability
- The promotion of the development of e-commerce activities and the transportation of parcels by providers
- The development of Curaçao as a hub in the region and to further enhance this hub-function
Strategy Electricity
Through the lack of sufficient competition in the market for electricity there is insufficient pressure on the prices for electricity. RAC herewith applies a strategy which aims at stimulating market-orientation and market development, whereby the following matters constitute a focal point:
- Higher efficiency
- Operating in a more cost-effective manner by providers
- Operational activities of providers which are market-oriented
- A lower level of NRE (non-revenue electricity)
- Guaranteeing the availability of electricity
- Stimulating the independence from fossil fuels (crude oil)
- Stimulating sustainable energy by means of generating facilities (wind- and solar energy) and retro delivery of electricity by end-users
Strategy Fuels
Similar to the electricity market there is very limited competition on the fuel market, as a result of which there is insufficient pressure on the fuel tariffs. RAC’s strategy for fuel aims at stimulating a competitive environment through which market development might be whipped up. A focal point herewith is the aim at sustainability in the transport sector and a guarantee of availability of fuels.
Strategy Bitumen
The regulation by RAC with regard to bitumen is aimed at achieving stable prices whereby the actual purchase prices of bitumen are taken into account as much as possible. By keepig pace with the development of the actual purchase price for the main supplier of bitumen in determining the sales price, sharply rising shortages for Curoil are prevented, as well as the far-reaching tariff adjustments to cover these shortages. This will result in increased price stability in the market for bitumen.
Strategy Water
Through the lack of sufficient competition in the sector of water, there is insufficient pressure on the prices, the quality and efficiency. RAC strategy aims at enhancing the efficiency, achieving savings and creating a market-oriented approach from the providers by means of employing regulation.
Strategy Airport tariffs
Among the airport tariffs are to be counted: passenger facility charges, landing- and parking fees. The airport market is strongly monopolistic by its nature. Herewith RAC applies a strategy which is oriented to efficiency and a determination of tariffs based on cost effective operations, while at the same time maintaining sufficient perspective for product renovation and quality improvement. Due to the direct link between costs and quality, RAC strategy for regulating the airport tariffs also impacts the quality of the services offered by the airport.