Support for electricity and water price regulation in Aruba

Although renewable energy capacity exists (wind and solar), its development remains limited by the lack of a modern, structured regulatory framework. The fixation of electricity and drinking water tariffs is currently the responsibility of the Minister of Economic Affairs, without formalized regulatory methodology or clear transparency obligations.

Stakes & objectives
The facility aims to support the modernization of the legislative and regulatory framework of the energy sector in Aruba, with an initial focus on the regulation of electricity and drinking water prices. The aim is to integrate principles of transparency, of equity and non-discrimination to support energy transition, the development of renewable energies and a resilient management of drinking water.

stakeholders involved
Government of Aruba and Department of Economic Affairs, Commerce and Industry.

Facility description
The facility includes the completion of a baseline study on the current pricing of electricity and drinking water in Aruba, the identification of associated challenges and the analysis of international and regional best practices. Stakeholder consultations have been carried out to identify the specific needs of the territory. The project also includes a gap analysis with international practices and the development of new legislation aimed at integrating the regulation of electricity prices into the existing regulatory framework.

➡️ The draft legislation is currently under development.