MP Wescot-Williams urges PM: “Enforce relief measures directly where possible"

GREAT BAY--MP Sarah Wescot-Williams has recommended that the Prime Minister take direct action where government has responsibility and enforce measures indirectly via GEBE in its capacity as Shareholder, in order to provide urgent relief to the people of St. Maarten. She stressed that GEBE’s board has shifted the responsibility for its affairs directly back to government without any substantiation, leaving consumers in limbo.

“In light of this, I have proposed to the Prime Minister that the following measures be enforced, directly where it is the responsibility of Government and indirectly via the company as its Shareholder,” Wescot-Williams stated.

Key recommendations made by the MP include:

• Establish an independent regulator to oversee tariffs and protect consumers.

• Enforcement of immediate tariff relief by GEBE, including correcting fuel cost allocations, revising water tariffs, and granting direct relief on a per-kilowatt-hour basis.

• Investigate the issue of social tariffs and assess without delay the financial state of GEBE.

• Require quarterly reports from GEBE, including fuel procurement data.

• Collaborate with GEBE to urgently stabilize fuel prices.

“In light of the current financial uncertainty of the company, I believe it is essential to conduct a financial quick scan to determine the financial state of GEBE and their (in)ability to afford proposed measures,” she said. “While I do not believe that the concession fee should be relinquished, the government can consider holding off on collecting or off-setting the concession fee to allow for immediate relief, only until we gain a better understanding of GEBE’s financial situation.”

The MP also expressed concern about the broader governance climate at the utility company. “As I reflect on the current situation with GEBE, it appears that we have reached a stalemate reminiscent of previous impasses. Approximately a year ago I wrote to the government in a similar situation and expressed concerns regarding the off-balance of power between the various stakeholders in a government-owned entity, which include the shareholder, supervisory board of directors, and management. Last year’s stand-off had to do with the crisis in the electricity production and supply. Even then, the information provided by GEBE to Parliament via the respective ministers was sketchy. Commitments to provide financial information on the company were not met.”

She warned that “today, I reiterate the call for attention to the roles and corporate responsibilities of each party involved in the corporate structure of GEBE. In my opinion, the current stalemate is counterproductive to the original intent of seeking relief for the St. Maarten populace. The primary focus should remain on addressing the pressing issues of high utility costs and the unresolved billing fiasco.”

According to Wescot-Williams, disagreements cannot obscure the fact that there is consensus on the need for relief. “Despite disagreements, there is a clear consensus on the need for relief in utility costs, particularly for those on fixed income and minimum wage earners. As I have consistently advocated, assistance to needy households cannot be solely confined to wage indexing; it must be part of a comprehensive package of measures, including cost of utilities.”

She recalled that the drive for consumer relief led to the commissioning of a report by the Government/Shareholder to examine relief options, but “GEBE’s response has shifted the bulk of the responsibility back to the government, without any substantiation. This exchange is taking place in an environment of mistrust, which is detrimental to the process and to consumers awaiting clarity on the proposed measures.”

Wescot-Williams also reminded that broader reforms remain pending. “Furthermore, the review and upgrade of corporate governance rules, which is long overdue, remains stalled. Since 2009, only sporadic updates have been made, as for example in the case of PJIA.”

She concluded by emphasizing that “it is crucial that the government remains focused on addressing the current crises at our electricity company as its Shareholder and not be sidetracked by yet another dispute between the shareholder and the supervisory board of directors at NV GEBE.”

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