MP Wescot-Williams questions GEBE tariffs, plans amendment for structural social rates

GREAT BAY--Member of Parliament Sarah A. Wescot-Williams has submitted new correspondence to government regarding the legal basis and current method of tariff setting for utilities provider NV GEBE. Her latest questions were directed to either the Minister of Tourism, Economic Affairs, Transport & Telecommunication (TEATT) or the Minister of Public Housing, Spatial Planning, Environment & Infrastructure (VROMI), given the overlapping references in legislation concerning price-setting authority and the Electricity Ordinance.  

MP Wescot-Williams explained that her inquiries focus on identifying which minister is legally responsible for establishing electricity tariffs under the law, and whether the required national decree (LBHAM) governing those tariffs exists. She emphasized that the concession law for GEBE explicitly refers to tariffs, and does not exclude the fuel clause, meaning that the fuel clause charged to consumers may also need to be set by government decree.

“I want to ensure that I get a solid grasp of this matter in terms of the existence of the decree establishing all tariffs for GEBE, including the fuel clause. If no such decree exists, then I want to know how these tariffs are currently charged,” she stated.  

The MP has requested that her questions be answered in a public Question Hour of Parliament, underscoring the importance of transparency in utility pricing.

In earlier correspondence, MP Wescot-Williams sought clarification from the Prime Minister on the concept of a social tariff for GEBE customers. She referenced the concession law, which allows government to deviate from established tariffs on social grounds to be established by law. However, she noted that if government sets tariffs below GEBE’s production cost, the law requires that government compensate the company for the difference.

In connection to this, she reiterated a previous suggestion that such compensation could be funded through the concession fee paid by GEBE, which is itself part of the company’s operational expenses.

Once government provides full clarity on:

• the most recent decrees establishing tariffs,

• the legal basis for the fuel clause, and

• the position on social tariffs,

MP Wescot-Williams intends to table a draft amendment to the electricity concession law. This amendment would establish a structural, legal basis for social tariffs, including:

• lower tariffs for vulnerable households,

• special categories for social institutions such as schools, and

• guidelines for how government compensation to GEBE should be structured.  

She reiterated the urgency of addressing the matter:

“I hope that the Question Hour can be scheduled before year’s end so we can move toward a structural basis for government-set tariff categories, including social institutions and residents who are most in need.”  

MP Wescot-Williams awaits:

• the Prime Minister’s response regarding social tariffs, and

• the responsible minister’s explanation of the legal establishment of current tariffs, including the fuel clause.

Following these responses, she is prepared to proceed with the draft amendment. The MP reaffirmed that lasting, structural amendments to existing laws can only be achieved through close cooperation with the government—hence her ongoing engagement with the responsible ministries.

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