~Govt. drafting law to regulate tariffs~
PHILIPSBURG--The fuel clause charged to consumers is primarily linked to the cost of fuel supplied by fuel supplier SOL to utilities company NV GEBE, rather than being determined by NV GEBE itself, Prime Minister Dr. Luc Mercelina said during Wednesday’s live Council of Ministers press briefing.
Mercelina explained that the fuel clause reflects international oil market prices and the cost charged by SOL to GEBE for the fuel it supplies. As GEBE does not have sufficient storage capacity to independently store all the fuel imported into St. Maarten, SOL handles that function, he said.
He acknowledged the financial pressure caused by high fuel prices and said he had asked SOL to consider contributing to relief efforts, similar to GEBE’s contribution of Cg. 1.5 million annually for elderly people and the most vulnerable residents.
Mercelina said the Bureau Telecommunications and Post (BTP), in cooperation with the Regulatory Authority of Curaçao (RAC), had previously analysed the validity of the billing structure. Government is now drafting legislation to establish a legal framework for regulating electricity tariffs.
The draft legislation must still pass through the Council of Ministers, the Advisory Council and Parliament. Meanwhile, BTP is in discussions with GEBE, SOL and other stakeholders to analyse the fuel clause and tariffs.
Under the proposed framework, the Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) would regulate tariffs, supported by formal advice from BTP.
Mercelina also questioned whether GEBE could provide additional relief while some consumers have outstanding bills, noting that unpaid accounts affect the company’s finances. “GEBE has no say in the price that GEBE is being charged for fuel,” Mercelina said.
