N.V. Elmar is the sole provider of electricity on the island of Aruba.
N.V. Elmar is an abbreviation for the full company name in Dutch: "Naamloze Vennootschap Electriciteit-Maatschappij Aruba".
The Naamloze Vennootschap, abbreviated as N.V. is the traditional Limited Liability Company with its capital divided into shares and may be compared with the Spanish S.A. and the U.S. Corporation.
History N.V. Elmar was founded on . It began operation on . Prior to that date, electricity distribution for the island had been provided through N.V. Electra. In June 1951, the Public Works Department presented a draft agreement to Elmar which the company did not counter until March 1952. Members of the Finance and Public Works departments met with Elmar's management on for negotiations. The Attorney General determined the agreement reached to be legally acceptable, and Elmar stated that it could be enacted retroactively to with the stipulation that it be swiftly agreed to. The agreement that Elmar returned initially contained provisions to extend the contract from 25 up to 75 years, and offered a savings of 14% of what had been paid for distribution with Electra. The executive board objected to the length as well as the high tariff imposed. In response to the tariff complaint, Elmar announced a new fee schedule that would begin on . In a November meeting, other concerns with the contract were raised, including the absence of some items from the agreement which would nullify the purported forthcoming savings.
In 1956, negotiations with the N.V. OGEM included provisions for Elmar, specifically the requirement that the company purchase all residual electricity up to 4,000 kW at a rate of 2.1 Antillean cents per kWh. The agreement explicitly stated that Elmar was responsible for "uninterrupted and sufficient power supply". It stipulated that the pricing would be good for ten years and was to be tacitly extended, and included details regarding the maintenance of the power plant and high-voltage cables.
In 1960, OGEM negotiated a plan with the Netherlands to expand electric service to the whole of Aruba over a period of three years that included the construction of 50 new transformer stations, and laying more than of high-voltage and more than of low-voltage cable. The agreement included an eight-year budget of 98,100 florins. An agreement between Elmar and Aruba in which the island government agreed to pay for the expansion of electricity throughout the island was signed on . Elmar began the work to connect more neighborhoods to the electrical grid in August 1962. The company connected those in which residences were more closely congregated to the grid first.
On , the interim governor of Aruba, Isaac S. de Cuba, signed an agreement with Elmar which ended the 1956 contract as well as stipulating for the closure of Elmar's power plant in Balashi, which had been built in 1950.
On , eight neighborhoods gained access to electricity via the Elmar power line running through Noord. The project spanned three years, used 72 tonnes of copper, and required the construction and installation of 1832 utility poles. Palm Beach, which began receiving electricity on , was the final area of the grid expansion project.
In September and October 1965, customers' electric bills decreased due to a tariff reduction negotiated by the Director of Social and Economic Affairs with Elmar and OGEM. Residents received a 48.2% tariff reduction. On 29 November, the entire island experienced power loss for between thirty minutes to an hour, which Elmar stated was a result of a communication failure between equipment at Water and Energy Company (, WEB) and Elmar's central distribution. The power failed again on 9 December, from approximately 8:45 AM until 1 PM.
Elmar built a substation in Paardenbaai in 1967.
On , the island government contracted Elmar to improve the lighting of public streets throughout Aruba, increasing the number of street lights to 3,000 and upgrading them to mercury lamps.
Elmar constructed a switching station in Balashi in 1979, and a substation in Sabana Blanco in 1981. The latter two cost approximately 7 million florin, and another substation planned for Noord was expected to cost an additional 5 million.
In 1985, OGEM faced bankruptcy. The island government had been in negotiations with OGEM to purchase their shares in Elmar since 1974. Arutil N.V., backed by the MEP government, was founded for the purpose of purchasing Elmar. The Aruban Democratic Party strongly opposed the sale to the group, in part because the MEP claimed there were no funds for the government to purchase the shares from OGEM while also backing a group whose funding source they refused to disclose. On , Parliament approved the Aruban People's Party's motion to have the government purchase OGEM's 85% stake in Elmar.
Unionization The Aruba Electricians Union () was established in October 1963.
In January 1964, the union submitted a collective labor agreement to Elmar. The parties negotiated several benefits for employees, including salary increases, a medical fund, and regulations covering employee illness. The agreement was signed on , to last through . Half of the Union's membership at the time worked at Elmar. By 1966, all members of the UEA worked at Elmar.
A pension agreement, including survivor's benefits, was reached on .
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