MP Omar Ottley Submits Proposed Regulation to Place Electricity Costs and Fuel Pricing Under Government Control

GREAT BAY--After months of research and consultations, and in a major step to protect consumers and restore fairness in electricity pricing, Member of Parliament Omar Ottley has formally submitted a draft Ministerial Regulation (MR) that will bring the price of electricity and the fuel used to generate it under direct Government economic supervision.

The MR emphasizes affordability and fairness through a tiered base rate and a corrected, verifiable fuel clause, plus direct relief for seniors through a clear, one household, 65 plus rate. It describes a monthly correction mechanism that prevents hidden surpluses or deficits from accumulating on consumer bills, and it requires invoices and customs entries to support every fuel price used to set electricity costs. The result is a predictable framework that can lower and stabilize bills relative to the prior method while keeping GEBE financially viable for operations and investments.

The draft MR introduces oversight of the fuel costs that drive electricity prices, including Heavy Fuel Oil, Light Fuel Oil, diesel, and industrial lubricants, which until now have been left completely unregulated, allowing unpredictable fluctuations to hit households and businesses without warning.

“We cannot continue allowing families and business owners to be blindsided by soaring power bills. This regulation will put transparency, accountability, and fairness back into the system. Despite motions to request the Government to draft the needed MR over a year ago, the Government has not presented a draft MR to date and therefore, I decided to do the work for the Government as the people deserve affordable electricity”, stated MP Ottley.

Key measures introduced in the draft ministerial regulation include a transparent, data based formula to calculate the fuel clause, ending unchecked cost pass throughs, a reduction of the fixed service charge, easing the monthly burden on consumers, tiered base rate billing that protects lower usage customers, strict efficiency standards for GEBE operations so inefficiencies can no longer be passed on to consumers, and monthly oversight and reporting through the Bureau Telecommunications and Post, BTP.

These measures directly stop the unchecked practice of transferring plant self consumption, excessive technical losses, or unverified fuel expenses onto the people of St. Maarten. Under the proposed regulation, if GEBE does not meet industry efficiency standards, the company absorbs the cost, not the consumer.

Following the submission of the draft MR, MP Ottley also formally submitted the GEBE Petition to the Committee of Petitions, on behalf of the residents and business owners who signed it. The petition clearly demonstrates overwhelming public demand for relief and stronger Government oversight. “The people have spoken. I am standing with them. This is the beginning of real, structural reform, not talk, not promises but action.”

MP Ottley publicly acknowledges the cries of the 800 plus signatories to the GEBE Petition, and encourages all to stay tuned for the calling of Committee of Petitions public meeting, and to remain confident that the Minister of TEATT, Mrs. Grisha Heyliger Marten, will implement the draft ministerial regulation at soonest.

The Minister of TEATT will review the draft MR, marking a major turning point in how electricity pricing is governed and supervised in St. Maarten. “I applaud the Minister for accepting the meeting with an open mind. The fact that she has now promised internal review and will on it with urgency.”

Legal basis and how it benefits you

The Explanatory Memorandum records that Government is taking a more active role in supervising electricity tariffs and in setting maximum wholesale and retail prices for fuel and non fuel petroleum products used to generate electricity, to protect consumers and ensure transparent, efficient price formation. The legal basis includes the Prices Ordinance, which empowers the Minister of TEATT to set maximum prices for goods and services where pricing affects the public interest, including requirements for price formation records and verification.

The Regulation assigns monthly oversight and advisory work to the Bureau of Telecommunications and Post, BTP, under its statutory powers. The focus of supervision is the affordability and transparency of the electricity tariff, supported by verified data and monthly advice to the Minister.

On electricity, the Regulation codifies a four part tariff, a fixed service charge, a one time connection or reconnection fee, a base rate for non fuel costs, and a monthly fuel clause that tracks actual fuel use and verified prices. The base rate may be proposed by GEBE on a quarterly basis in shareholders meetings, with justification tied to operational costs and investments for Government consideration. The monthly fuel clause uses a data driven method with a mandatory correction mechanism, so any over or under recovery in one month is corrected in the following month, aligning actuals to the application so bills reflect real conditions.

The Memorandum explains why the previous approach caused distortions. Earlier calculations deducted water production fuel and used a fixed high technical loss figure, which pushed costs onto electricity consumers and dampened efficiency incentives. The new method uses actual non revenue electricity with a standard and caps plant self consumption. Any excess above the standard is for the concession holder’s account, not the public’s.

Senior citizens are recognized directly in the tariff framework. A dedicated 65 plus category applies once the senior provides valid identification, a completed application, and a recent GEBE bill in their name. The rate applies to one household, the primary residence, and takes effect the next billing month once approved. This is targeted relief for elders on fixed incomes and it prevents misuse by requiring the account holder to be the applicant.

On fuels, the Regulation sets a transparent price build up that the Minister reviews monthly with advice from the Department of Economic Affairs and BTP. The purchase price uses actual invoices, is converted at the Central Bank rate, and is benchmarked against international postings with a ceiling above recognized references, unless the importer justifies an exception for the regulator and the Minister. Freight, taxes, liquid throughput, and regulated markups are defined line by line to arrive at the end user tariff. This closes the door on above market markups and stabilizes the costs that flow directly into electricity bills.

Compliance and verification are spelled out. Importers, agents, and distributors that supply GEBE or any licensed generator must file monthly declarations with supporting documents, including commercial invoices, bills of lading, insurance, customs entries, and currency conversion details. BTP and the Department of Economic Affairs verify those against benchmarks and regional landed costs. Exceeding the regulated markup is prohibited and subject to enforcement.

For electricity itself, the concession holder is prohibited from billing above the rates fixed in the annex to the Regulation. Maximum petroleum prices are set by the Minister after hearing BTP, and the Regulation states it will enter into force upon publication in the National Gazette, noting urgent importance under the Constitution.

The Explanatory Memorandum also notes that Government had not historically regulated HFO and LFO, which are key inputs, and that the Regulation introduces monthly reporting, calculation, and monitoring mechanisms to create transparency, accountability, and predictability in electricity pricing for households and businesses in St. Maarten.

The document includes an illustrative bill comparison showing that, using the new method with verified inputs and the reduced fixed charge, a sample domestic consumer using 855 kWh would see a lower total than under the 2011 method, because the new denominator reflects only allowable losses and capped own consumption, and the fuel costs are tied to regulated fuel prices.

Key Articles Cited

The Regulation invokes the Prices Ordinance and the National Ordinance governing BTP to set maximum prices and to assign supervision. It defines core terms, the tariff structure, and BTP’s oversight role. It prohibits selling electricity above the annexed maximums and fixes monthly determination of the fuel clause using a verified formula based on actual monthly data.

It establishes rate categories for domestic, business, industrial, and seniors, sets application rules for seniors, and fixes that no one may sell fuel or non fuel petroleum products above the maximums set, with the Minister adjusting prices monthly on BTP and Department advice. It mandates monthly documentary declarations by importers and empowers BTP and Economic Affairs to verify them.

It states that maximum prices are set by the Minister after hearing BTP, and that the Regulation enters into force upon publication, given urgent importance under the Constitution.

From Minister Grisha Heyliger-Marten:

The Minister said that Government is moving ahead to designate the Bureau of Telecommunication and Post as the regulator for the energy sector, led by Prime Minister Luc Mercelina and the Minister herself. "MP Omar Ottley’s proposal on electricity tariffs and fuel prices will be reviewed within this broader effort to build a full regulatory framework for energy production and pricing."

Minister Heyliger-Marten reiterated plans to introduce a senior tariff and to explore net metering so households investing in solar can benefit from fair, regulated rates. She said the goal is a transparent framework that brings relief for households and stability for the sector, with clear oversight and accountability. Government said it will continue engaging stakeholders and the public as the work progresses.

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