Otium: One Step Closer, But What Scale Really Matters?

Otium: One Step Closer, But What Scale Really Matters?

23 September 2025

According to recent reports, Otium may become a new electricity producer on Curaçao—if the Minister of Economic Development grants the necessary license. The electricity generated would be fed into the Aqualectra network and, either through or alongside Aqualectra, reach the consumer.

This immediately reminds me of the theory behind telecommunications, where multiple service providers compete over a central network. That theory, in turn, is rooted in the broader idea that competition and privatization yield better prices, quality, and service.

However, when examining telecommunications in Curaçao, the actual outcome has often been disappointing. Quality, service, and price have frequently fallen short of expectations. The textbook theory of competition hasn’t delivered as promised here.

One strong reason seems to be scale. Many studies show that electricity (or other utility) markets often require a population of at least 500,000 to 1,000,000 people, or a sufficiently large and stable demand, before competition between multiple producers becomes viable without imposing excessive risk or cost. Curaçao’s population (around 150,000) is well below that threshold.

Suppose better prices, better quality, and improved service are what we seek in vital sectors like electricity. In that case, governance, regulatory clarity, oversight, and strong management must take center stage—not just relying on market forces to do the job.

Miguel Goede