HNLMS Friesland has intercepted another drug shipment in the Caribbean. This time, it involved 318 kilos of cocaine during an operation on August 18th. The announcement was made today. This is already the eighth time the ship has intercepted drugs.

On that evening, the station ship HNLMS Friesland spotted a suspicious vessel in the Caribbean Sea. It was a so-called go-fast, a fast boat often used for drug smuggling. As soon as this was clear, both rapid interception vessels (Friscs) from the Friesland were deployed to approach the boat.

Overboard

A chase ensued, during which the smugglers threw packages overboard. The chase was called off, and the Frisc crew was subsequently able to recover 318 kilos of cocaine. The drugs were handed over to the US Coast Guard for destruction, as is customary.

Combating

HNLMS Friesland has been active in the region since May. Combating drug trafficking at sea is one of the Ministry of Defence's responsibilities in the Caribbean. The station ship works alternately with the Caribbean Coast Guard and the US Coast Guard.

PHILIPSBURG:--- The Police Force of Sint Maarten (KPSM) continues to take firm action to keep Philipsburg and its surroundings safe for residents, businesses, and visitors. Over the past days, officers issued several fines and towed 10 vehicles that were parked in ways that blocked access or created safety risks or parked illegally. Officers also conducted checks on suspicious vehicles, scooters, and motorcycles, particularly in the busy areas of Front Street and Back Street.

On Wednesday, August 27, 2025, during one of these controls, officers attempted to stop a scooter rider on Front Street. The rider tried to escape by driving through alleys that were closed off to traffic. After a short pursuit, officers cornered the suspect, who continued to resist arrest. The individual was eventually brought under control and taken to the Philipsburg Police Station.

KPSM stresses that these operations are not only about enforcement but about protecting the community. Reckless driving, illegal parking, and attempts to avoid police checks put everyone at risk. We ask all vehicle drivers, motorcycle riders, and scooter riders to cooperate fully with officers carrying out these important tasks.

Everyone has a role to play in keeping Philipsburg safe. KPSM will continue these operations and will take the necessary measures against anyone who resists or obstructs police work.

KPSM Press Release.

PHILIPSBURG:--- Sint Maarten's electricity and water tariffs are under intense scrutiny, with two recent evaluation reports offering conflicting analyses and recommendations. One report, prepared by the Regulatory Authority of Curaçao (RAC) and Bureau Telecommunication and Post (BTP), calls for significant regulatory reform and tariff restructuring. The other, a review of the RAC/BTP report by Reporting, Controlling and Regulatory Consulting (RCRC) on behalf of the utility company GEBE, raises alarms about the potential financial consequences of the proposed changes. A close comparison reveals key inconsistencies in their findings, methodologies, and core recommendations.

Divergent Methodologies and Core Assumptions

A primary point of conflict lies in how each report approaches the evaluation. The RAC/BTP report adopts a classic regulatory stance, focusing on cost causality and consumer protection. It methodically dissects the tariff formulas, concluding that the current system lacks transparency and results in consumers being overcharged. The report operates on the assumption that tariff components should directly and accurately reflect the costs they are meant to cover.

Conversely, the RCRC report argues that the RAC/BTP's approach is biased from the start, claiming its objective was pre-determined "to determine whether the fuel component can be reduced." RCRC’s analysis prioritizes the financial stability of the utility provider, GEBE. It contends that while the current tariff structure may be flawed, a cross-subsidy exists between different components. It warns that reducing one part of the tariff without a corresponding increase elsewhere would jeopardize GEBE's financial health.

The Fuel Clause: A Tale of Two Interpretations

The calculation of the fuel clause—a key component of consumer bills—is a central point of disagreement.

• RAC/BTP Finding: The report finds a cumulative surplus of approximately 12.6 million guilders in the fuel clause for electricity over three years (2022-2024). It argues that the formula incorrectly allocates the cost of electricity used for water production to all electricity consumers, effectively making them pay for a component of the water service.

• RCRC Rebuttal: The RCRC report acknowledges the surplus but attributes it to an outdated yet legally standing 1979 Ministerial Decree governing the water fuel clause. It asserts that the RAC/BTP's conclusion of "double charging" is based on a misunderstanding of this decree. While agreeing the decree is obsolete, RCRC warns against hastily removing the electricity cost for water production from the electricity tariff, estimating it would create an annual revenue shortfall of 9.2 million guilders for GEBE.

Recommendations on Non-Revenue Electricity (NRE)

Both reports agree that Non-Revenue Electricity (NRE)—power lost in transmission or due to theft—needs to be addressed in the tariff calculation. However, they differ on how it should be applied.

• RAC/BTP Recommendation: Proposes that the current fixed 8.5% NRE rate should be replaced with a dynamic, monthly calculation based on actual performance. This would create an incentive for the utility to improve efficiency.

• RCRC Counterpoint: Argues against a dynamic NRE rate, emphasizing the need for predictability in consumer tariffs. RCRC recommends maintaining a constant, fixed NRE norm to avoid volatile monthly price fluctuations for customers.

The Path Forward: Reform vs. Caution

The two reports present starkly different paths for the future of Sint Maarten's utility tariffs. The RAC/BTP report is a call for immediate and comprehensive reform, advocating for independent regulatory oversight, formula restructuring to ensure fairness, and a review of the deep cross-subsidies between commercial and domestic water users.

The RCRC report, while acknowledging inefficiencies, urges extreme caution. It frames the issue as one of financial sustainability, suggesting that any changes must be part of a holistic, integral cost-of-service study. Its core message is clear: altering one part of the complex and interconnected tariff system without understanding the full financial impact could lead to unintended and severe consequences for the utility provider.

Ultimately, these conflicting reports highlight a fundamental tension in utility regulation: balancing consumer fairness and tariff transparency with the operational stability of the sole provider. The divergence in their findings underscores the complex decisions facing Sint Maarten's policymakers as they navigate the critical task of structuring fair and sustainable utility rates.

PHILIPSBURG: --- A detailed evaluation has delivered a stark warning to St Maarten: proposals to lower the fuel component of GEBE's electricity tariffs could trigger a "crippling effect" on the utility's financial stability and future operations. The comprehensive report, conducted by Reporting, Controlling and Regulatory Consulting B.V. (RCRC), was commissioned by GEBE's management to analyze a prior evaluation by the Regulatory Authority of Curaçao (RAC) that suggested tariffs could be reduced.

The RCRC analysis methodically dismantles the basis for a tariff reduction, cautioning that such a move would be premature, risky, and based on flawed assumptions. It calls for a complete and integrated overhaul of the entire tariff structure rather than a piecemeal adjustment that could jeopardize the island's essential services.

A Biased Approach and a Cautionary Tale

A primary concern raised by the RCRC report is the "biassed approach" of the initial RAC investigation. RCRC argues that the RAC's objective was narrowly defined "to determine whether the fuel component can be reduced," which inherently steered the research toward a predetermined outcome. This mindset, the report states, disregards the critical need for a balanced approach that protects both consumer interests and the utility company's sustainability.

To underscore the potential danger, the report draws a direct parallel to a similar event in Curaçao in 2011. There, a government-backed decision to lower the fuel component pushed the local utility to the brink of bankruptcy, necessitating a government bailout, a subsequent tariff increase, and a long-term recovery charge for consumers. The report grimly notes, "Each time history repeats itself; the price goes up."

Cross-Subsidies Mask Deeper Financial Issues

A central finding of the RCRC evaluation is the existence of a significant "cross subsidy" within GEBE's current tariff system. The report reveals that GEBE's ability to achieve a reasonable profit in 2023 was not due to its base tariff components, which are meant to cover operational costs, investments, and a reasonable return. Instead, the profits were generated almost entirely through the fuel component.

This indicates that the base rates for electricity and water are fundamentally insufficient. Lowering the fuel component without a simultaneous, carefully calculated increase in the base rates would, according to the report, "unquestionably have a perilous effect on the company’s sustainability." The analysis quantifies the risk, estimating that one proposed adjustment—omitting the cost of electricity used for water production from the electricity tariff—would slash GEBE's annual revenues by approximately XCG 9.2 million.

Outdated Decree and Flawed Assumptions

The investigation uncovered that GEBE's fuel clause for water production is governed by an outdated Ministerial Decree from 1979. RCRC asserts that the RAC's analysis misinterpreted this decree, leading to the incorrect conclusion that certain costs were being charged twice to consumers.

Based on this erroneous assumption, the RAC recommended eliminating a component of the electricity tariff. RCRC rejects this recommendation, concluding it is based on a misunderstanding of the legal and financial framework GEBE operates under. RCRC strongly recommends that the outdated 1979 decree be formally rescinded and replaced with a modern, transparent calculation model that accurately reflects GEBE's current operational realities.

How Sint Maarten's Rates to provide context, the RCRC report includes a benchmarking analysis comparing GEBE's utility rates with those of Curaçao, Aruba, and Bonaire.

• Electricity: The comparison shows GEBE's electricity tariffs are competitive. For residential, commercial, and large industrial users, Sint Maarten's prices are in line with Curaçao's and generally lower than Bonaire's, despite Sint Maarten's smaller population and reduced economies of scale. The report concludes that GEBE is not overcharging customers for electricity.

• Water: The water tariff comparison reveals a significant imbalance. While residential water rates in Sint Maarten are substantially lower than on the other islands, commercial and industrial customers face dramatically higher charges. This disparity, the report argues, highlights the urgent need for a holistic review of the tariff structure.

The Path Forward: A Call for Comprehensive Reform

The RCRC report's ultimate conclusion is a call for caution and comprehensive reform. It strongly advises against any immediate, isolated reduction in the fuel tariff. Instead, it puts forth several key recommendations:

1. Conduct an Integral Cost of Services Study: GEBE must perform a profound analysis of all its tariff components for both electricity and water to establish correct, balanced, and sustainable rates.

2. Revamp the Tariff Structure: The entire tariff system, including both base and fuel components, should be restructured simultaneously to eliminate cross-subsidies and ensure all costs are correctly allocated.

3. Replace the Outdated Decree: A new, ministerially approved framework for calculating the fuel components for electricity and water must be created to replace the 1979 decree.

4. Incorporate Efficiency Norms: While agreeing with the RAC on the need for efficiency norms, RCRC recommends that these be constant and predictable to avoid volatile fluctuations in consumer bills.

The report serves as a critical advisory, urging policymakers to look beyond a superficial tariff cut and instead commit to a foundational restructuring that will secure the long-term financial health of GEBE and guarantee reliable utility services for Sint Maarten.