Energy
Legislative framework
Within the energy sector, the market for fuels is significantly different from the market for electricity and water supply. The production, distribution and delivery of fuel products is also organized differently, as a result of which the regulation of the market for fuels is also arranged differently.
There is no specific legislation for the delivery of fuel products in Curaçao yet, as is the case for electricity and drinking water. Therefore, a concession is not required.
Through Curoil, the dominant supplier in the market of regulated fuel products, the Curaçao government has the role of central fuel supplier and it supplies fuel products from Isla/PDVSA:
- Mogas for motor vehicles
- Diesel (LSD) for motor vehicles (internationally purchased for Curoil)
- Diesel (MDF), gasoil (HSD) and Marine Fuel Oil (MFO) for the production of electricity
- Other fuels such as cooking gas for households and bitumen for asphalt provider ACC and end users
RAC supports the government of Curaçao in the development and execution of policy and supervisory frameworks for the regulation of fuels. The starting point for the policy and supervision in the field of fuels is based on efficiency, transparency and quality.
The supply of regulated fuel products is subject to very limited market dynamics.
In the scope of supervision this requires economic supervision on the supply of fuel. The Prices Ordinance 1961, (Official Gazette 1961, no. 117)* constitutes the basis of this.
Based on article 2 of the Prices Ordinance 1961, the Guideline Tariff Regulation Fuels is also used for the regulation. Here within a demarcation is given of the role of Curoil and RAC where it concerns the implementation of tariff adjustments and a description of the time when and the basis on which fuel prices may be adjusted by the market parties involved.
* Note: This National Ordinance has not yet been adapted to the new constitutional structure effective as from 10 October 2010.