PM acknowledges delay in GEBE relief as company disagrees with measures

GREAT BAY--Prime Minister Luc Mercelina has confirmed that although his government has submitted formal recommendations for energy relief based on a recent report by the Regulatory Authority for Consumer Protection of Curacao (RAC) and Bureau Telecommunications and Post of St. Maarten (BTP), no immediate action will be taken by N.V. GEBE, which has expressed disagreement with key proposals and opted to conduct its own independent analysis. This has been a position indirectly expressed by GEBE's temporary manager a few weeks ago.

The Prime Minister reiterated his administration’s commitment to addressing high electricity costs, which he called a “despicable burden” on the people of St. Maarten. The RAC-BTP report, commissioned at his request, included over 40 pages of findings and proposed measures to reduce the financial pressure on consumers, among them a recommendation to lower the electricity rate to between 6 and 7 cents per kWh.

“I presented those recommendations to GEBE in writing,” Mercelina said. “As shareholder, we fully understand the need for relief and believe something must be done. Unfortunately, GEBE does not fully agree with the proposals, particularly the suggested rate reduction, citing the company’s vulnerable financial position.”

The Prime Minister acknowledged the tension between the public’s urgent need for relief and the utility company’s concern for its financial viability. “On one hand, our people are facing serious socioeconomic hardship. On the other, GEBE points to its own precarious financial status,” he said.

According to Mercelina, GEBE’s leadership has also questioned the methodology behind the RAC-BTP’s recommended rate reduction. “They indicated they didn’t fully grasp how RAC-BTP reached the 6–7 cent range, and they’ve decided to conduct their own internal study to analyze the tariffs,” he explained.

Mercelina confirmed that his office has since requested immediate clarification from GEBE’s supervisory board and has asked for a copy of the utility’s forthcoming report. “I’ve sent a follow-up letter requesting an explanation of their findings and how they came to question the conclusions of the RAC-BTP,” he said.

The Prime Minister emphasized that discussions with GEBE remain ongoing and constructive, despite the disagreement. “We’ve had two meetings so far, and we continue to engage in open dialogue. As a government, we remain fully committed to finding a solution and doing everything within our power to bring relief to our citizens.”

While no formal timeline has been given for GEBE’s independent analysis, the Prime Minister expressed hope that the process will be swift and transparent. “We understand that BTP is the authorized body on matters of price regulation, and we await GEBE’s input with interest. But we also want to be clear: our position has not changed, we are pushing for results,” Mercelina concluded.

‍