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Parliament's GEBE inquiry ends without answers as government says it still lacks critical utility data.

~Long-delayed meeting adjourned after dozens of questions remain unanswered; relief measures still dependent on information government says it has yet to receive~

parliamentinsession120620262PHILIPSBURG:---  A parliamentary meeting on NV GEBE, first requested in 2025, ended Friday without a conclusion after Prime Minister Dr. Luc Mercelina acknowledged that numerous questions from Members of Parliament remained unanswered, forcing the session to be adjourned and to be continued at a later date.

The unusual ending came after hours of discussion on utility tariffs, consumer relief, fuel costs, financial reporting, and governance issues.

As the meeting progressed, several Members of Parliament, including MP Ardwell Irion and MP Egbert Doran, challenged the Prime Minister's responses, arguing that many of their questions had been either generalized, grouped together, or left unaddressed.

By the end of the session, the Prime Minister acknowledged that additional work was needed and requested time to provide complete answers.

The result was a parliamentary meeting nearly a year in the making that ended with lawmakers still waiting for many of the responses they originally requested.

Government says relief depends on data it still doesn't have

One of the most significant revelations during the debate concerned the ongoing effort to provide relief to electricity consumers.

For months, residents have demanded answers about high electricity bills, fuel clause charges, and the absence of meaningful reductions in utility costs.

However, Mercelina told Parliament that the government remains constrained by law.

According to the Prime Minister, Article 12.4 of the Electricity Concession Ordinance requires any tariff adjustment to be based on verified cost-oriented data provided by the concession holder, NV GEBE. Without that information, the government cannot legally establish or alter tariffs.

The Prime Minister said this was precisely why the government activated the Bureau of Telecommunications and Post (BTP) as a supervisory authority.

"The supervisor now has the authority to obtain the verified operational and financial data that GEBE has not provided before," Mercelina stated.

The admission raises a troubling question: if the government still requires verified information before it can legally intervene in tariff structures, how soon can consumers realistically expect relief?

Decades-Old Formula Under Review

Another revelation involved the controversial 8.5 percent loss factor that forms part of GEBE's fuel clause calculations.

According to figures presented by the Prime Minister, actual non-revenue electricity losses have remained below 8.5 percent for years. The government reported losses of 6.4 percent in 2019, 6.7 percent in 2020, 5.9 percent in both 2021 and 2022, 6.5 percent in 2023, 7.3 percent in 2024, and 7.6 percent in 2025.

Mercelina said the 8.5 percent factor has reportedly remained unchanged in tariff calculations for at least 35 years.

The Prime Minister indicated that the figure may now be subject to review as part of the ongoing tariff study.

For consumers questioning fuel clause charges, the disclosure is likely to intensify calls for greater scrutiny of how electricity costs are calculated.

Financial Recovery Continues

The Prime Minister also provided updates on GEBE's financial position.

According to Mercelina, the utility recorded a loss of approximately NAf. 24.1 million in 2025, largely due to lower gross margins, increased maintenance expenses and provisions for doubtful receivables.

Despite those losses, GEBE is projecting a return to profitability in 2026 with an estimated profit of NAf. 4.5 million.

The utility's annual operational budget currently stands at approximately NAf. 121.2 million.

At the same time, outstanding payables at the end of 2025 totaled NAf. 184.7 million, underscoring the scale of the financial challenges still confronting the company.

Audit Progress after Years of Delays

Parliament was also informed that GEBE's long-delayed financial statements are finally moving toward completion.

The 2020 through 2022 financial statements have been finalized but received disclaimer opinions from auditors due to the impact of the cyberattack on financial records and operational systems.

The 2023 financial statements, however, received an unqualified audit opinion and are now available, while the 2024 statements are being finalized.

The development marks an important milestone in GEBE's efforts to restore financial reporting credibility after years of disruption.

Millions paid through the concession system

The Prime Minister also disclosed that GEBE's concession fee has steadily increased since 2010 and now stands at approximately NAf. 7.9 million annually.

Between 2018 and 2025 alone, concession fees totaled more than NAf. 54 million. However, the government explained that these amounts were largely offset against government utility consumption through a balancing arrangement rather than paid as direct cash transfers.

More Questions than Answers

Perhaps the most striking moment of the day came not from the answers provided but from those that were missing.

After MPs challenged the completeness of the Prime Minister's responses, Mercelina conceded that a misunderstanding had occurred regarding several sets of parliamentary questions and pledged to return with additional answers.

Chairlady Sarah Wescot-Williams subsequently adjourned the meeting, noting that Parliament could not proceed to clarifications or a second round of debate until all questions had been properly addressed.

For consumers hoping the long-awaited meeting would finally deliver definitive answers on tariffs, relief and electricity costs, Friday's proceedings ended much the same way they began: with many questions still unresolved and another continuation meeting now required.


Tune in to National Messages on Saturday at 9:00 AM to Commemorate the 41st Anniversary of Flag Day.

PHILIPSBURG (DCOMM):--- The Department of Communication (DCOMM) will be broadcasting national Flag Day messages in commemoration of the 41st Anniversary of Flag Day via its mediums from the Minister of Culture, Melissa Gumbs, Prime Minister, Dr. Luc Mercelina, and the President of Parliament, Sarah Wescot-Williams.

The nation can tune in at 9:00 AM on Saturday, June 13, 2026, to the Government Radio Station – SXMGOV 107.9 FM, via Facebook @SXMGOV Facebook Page, and YouTube https://www.youtube.com/@GovernmentofSintMaarten

The Sint Maarten Flag was designed by Roselle Richardson 40 years ago, presented by Dr. Claude Wathey, and approved and established by the members of the Island Council on June 13th, 1985.

The National Flag of Sint Maarten is a symbol of honor and pride for all Sint Maarteners at home and abroad.

The Sint Maarten Flag remains an integral part of the fabric of the historical and cultural heritage of the nation.

Individuals and businesses across the country are called upon to show their pride and patriotism by decorating and flying the Sint Maarten Flag on their vehicles, businesses, and buildings or other places deemed appropriate.

People are also reminded to follow proper protocol and etiquette when displaying the Sint Maarten Flag.

Cyberattack fallout still haunts consumers as government explains why utility relief never materialized.

~Parliament Told Billing Errors Took Years to Correct While Millions in Proposed Relief Measures Were Deemed Financially Unsustainable~

 

nvgebe10062026PHILIPSBURG: --- Nearly four years after a devastating cyberattack crippled NV GEBE's operations, Parliament was told Friday that the utility company spent years correcting billing errors, reconstructing customer accounts, and restoring financial records after incorrect meter readings led to inaccurate bills issued to consumers.

The disclosure came during the continuation of Parliament's public meeting on GEBE, where Prime Minister Dr. Luc Mercelina responded to questions from Members of Parliament about billing disputes, consumer complaints, and the lingering effects of the 2022 cyberattack that brought the utility to a standstill.

The debate also revealed another key factor behind one of the public's biggest frustrations: why promised relief on electricity bills has not materialized despite years of complaints about rising utility costs.

Billing restart led to incorrect invoices

Mercelina revealed that when GEBE resumed billing operations following the cyberattack, the utility initially relied on January 2022 meter readings to restart the system.

As a result, invoices generated for March, April, and May 2022 were based on incorrect consumption data.

"The correct meter reading was entered in June 2022," the Prime Minister explained, adding that the utility was subsequently forced to reverse the incorrect bills and replace them with corrected invoices.

The correction process affected customer accounts across the island and required extensive review of meter readings, invoices, and payment histories.

Years of Reconstruction

While many residents experienced the immediate effects of the cyberattack through delayed bills and service disruptions, Friday's parliamentary discussion shed light on the enormous administrative effort that followed behind the scenes.

According to Mercelina, correcting the errors was not a matter of simply generating new invoices.

Payments that had already been made on the incorrect bills first had to be identified and then reallocated to the newly generated accounts.

The process, he said, required considerable time and effort and continued throughout 2023 as GEBE worked to rebuild its financial administration and restore confidence in its billing system.

For many consumers, the complexity of the process may help explain why billing discrepancies, account adjustments, and reconciliation issues persisted long after the cyberattack itself.

Consumer Frustration Continues

The revelations come amid continued public frustration regarding electricity bills, outstanding balances and account disputes.

Over the years, many residents have questioned the accuracy of invoices received after the cyberattack, with some claiming they were unable to determine whether amounts being charged reflected actual consumption.

Parliament's discussion confirmed that GEBE has been dealing with the consequences of the attack for much longer than many consumers may have realized.

The utility's efforts to reconstruct financial records, reconcile payments, and validate account balances have become a major part of its post-cyberattack recovery process.

Why Relief Never Arrived

The parliamentary debate also provided new insight into a question consumers have repeatedly asked for years: if the government recognized the burden of high electricity bills, why did relief never materialize?

According to Mercelina, the government reviewed multiple proposals to reduce electricity costs, including direct subsidies, concession-fee reductions, throughput-fee waivers, and other measures to provide financial relief to consumers. However, many of those proposals carried significant financial consequences for either the government, GEBE, or other public entities.

One proposal involved redirecting GEBE's concession fee to reduce customer bills. The government calculated that such a measure would cost approximately NAf. 7.8 million annually in lost revenue. Another proposal involving direct financial assistance and subsidies was examined by the Council of Ministers but was ultimately returned for further review after concerns were raised about affordability and long-term sustainability.

The Prime Minister stressed that while relief remains possible, it must be lawful, financially responsible and sustainable.

Cyberattack Recovery and Relief Linked

The discussion highlighted what may be one of the lesser-known consequences of the cyberattack.

While consumers were dealing with delayed bills, disputed balances, and uncertainty regarding their accounts, GEBE was simultaneously attempting to reconstruct its financial records and restore confidence in its accounting systems.

The government argued that before major relief measures could be implemented, it first needed reliable financial information regarding GEBE's actual costs, revenues, and obligations.

Mercelina further noted that tariff adjustments require cost-oriented information from the utility, data that the government said had not always been readily available. As a result, authorities sought greater regulatory oversight through the Bureau of Telecommunications and Post (BTP) before pursuing major tariff interventions.

How Consumer Disputes Are Being Resolved

In response to questions from Members of Parliament, the Prime Minister said that consumers who believe their bills are inaccurate can challenge the charges by engaging directly with GEBE.

According to Mercelina, disputes are handled via email, WhatsApp, and in-person meetings with customers. Utility personnel then conduct a full review of meter readings, invoices, and payment histories to determine whether discrepancies exist.

The process is intended to verify account accuracy and resolve outstanding disagreements regarding balances owed.

New Safeguards Introduced

The Prime Minister also outlined measures implemented to reduce the risk of future billing errors.

Among the safeguards now in place is an automated system that flags unusual consumption patterns. Bills showing a usage increase or decrease of more than 30 percent compared to the previous billing cycle are automatically held from issuance until the reading can be reviewed.

Additionally, invoices exceeding 10,000 guilders are subject to manual review before being sent to customers.

The government says these controls are designed to identify anomalies before they reach consumers and prevent large-scale billing mistakes from occurring.

Recovery Still Shaping Today's Debate

Friday's parliamentary session served as a reminder that the consequences of the 2022 cyberattack continue to influence discussions surrounding GEBE today.

What began as a cyber crisis evolved into a years-long effort to reconstruct customer accounts, rebuild financial records, and restore confidence in the utility's billing system. At the same time, the government says the uncertainty surrounding financial data complicated efforts to implement consumer relief measures that could have cost millions of guilders.

For consumers still questioning old balances, disputed invoices or why relief never arrived, Parliament's debate offered a clearer picture of how deeply the cyberattack affected the utility—and why its effects are still being felt years later.

GEBE Sticks with Wärtsilä as Government weighs energy security options.

~Utility Cites Risks of Changing Suppliers While Government Explores Long-Term Energy Security Options~

nvgebepowerplant12062026PHILIPSBURG: NV GEBE remains in negotiations with Finnish engine manufacturer Wärtsilä as the utility evaluates its future power generation needs, with the government warning that switching suppliers could pose operational risks to the country's electricity network.

The disclosure emerged during Friday's parliamentary debate on GEBE, where Members of Parliament questioned the government about supplier agreements, energy infrastructure, and the utility's long-term strategy for ensuring reliable electricity generation.

According to Prime Minister Dr. Luc Mercelina, GEBE is currently engaged in discussions with Wärtsilä regarding pricing and future delivery schedules, with the company expected to submit a definitive proposal by July.

The negotiations come at a critical time for the utility as St. Maarten continues to grapple with aging infrastructure, growing electricity demand and mounting public concern over energy costs.

Why GEBE is Cautious about Changing Suppliers

One of the most significant revelations during the parliamentary session was the government's explanation of why GEBE has not aggressively pursued alternative engine suppliers.

According to the Prime Minister, GEBE has indicated that introducing additional competition into the generation market is not as straightforward as it may appear.

The utility has worked with Wärtsilä for years and is deeply familiar with the company's equipment, maintenance systems, spare parts requirements and technical support network. Any transition to another supplier could introduce uncertainty regarding equipment compatibility, staff training, maintenance procedures, parts availability, and delivery timelines.

The government said these factors must be carefully evaluated before any major procurement decisions are made.

The issue is particularly important for an island utility where equipment failures can have immediate consequences for residents and businesses.

Fuel Storage Expansion Still on the Table

The debate also shed light on future plans for fuel infrastructure.

Prime Minister Mercelina confirmed that any development of new fuel storage facilities would require a formal tender process and would have to proceed in accordance with GEBE's governance and procurement requirements.

The issue has become increasingly relevant as the government examines ways to strengthen energy security and reduce vulnerabilities associated with fuel procurement and storage.

Expanding storage capacity is widely viewed as one way to provide greater flexibility in fuel purchasing and improve resilience during supply disruptions.

Government Tight-Lipped on Supplier Contracts

Members of Parliament also sought details regarding GEBE's major supplier agreements, including contracts involving fuel and water production.

However, the government declined to provide specifics.

Mercelina stated that the contracts are commercially sensitive and confidential, preventing disclosure of their terms, duration, and pricing arrangements.

The refusal is likely to fuel ongoing debate about transparency, particularly as consumers demand greater accountability in electricity pricing and fuel costs.

Seven Seas and Future Water Production

While the government maintained confidentiality regarding supplier agreements, the Prime Minister indicated that the government retains greater flexibility in concession arrangements for water production than in GEBE's internal commercial contracts.

The future of water production infrastructure is expected to become an increasingly important topic as existing agreements approach their expiration and the government considers long-term options to secure potable water supplies.

Energy Security Emerging as Central Issue

Beyond the immediate debate over electricity prices and fuel clauses, Friday's discussion highlighted a broader concern facing the country: energy security.

The questions raised in Parliament revealed that the future of St. Maarten's energy sector extends beyond tariff disputes and consumer relief. Decisions concerning engine suppliers, fuel storage facilities, infrastructure investment, and procurement strategies will ultimately determine how reliable and affordable electricity remains in the years ahead.

The ongoing negotiations with Wärtsilä therefore represent more than a commercial discussion. They form part of a larger effort to balance reliability, affordability and long-term sustainability in a utility system that remains heavily dependent on imported fuel and specialized generation equipment.

Waiting for July

For now, attention will focus on the proposal expected from Wärtsilä next month.

The outcome of those negotiations could shape future investment decisions at GEBE and influence how the utility approaches equipment procurement, maintenance planning and generation capacity expansion in the years ahead.

As Parliament continues its scrutiny of the utility company, one message emerged clearly from Friday's debate: while consumers remain focused on their monthly bills, government is increasingly focused on the infrastructure and supplier decisions that will determine the future stability of the country's power system.

GEBE-Sol fuel talks collapse over transparency dispute.

~PM Says Utility Sought Answers on Fuel Charges as Consumers Continue to Shoulder Rising Electricity Costs~

nvgebe10062026PHILIPSBURG — Negotiations between NV GEBE and fuel supplier Sol have broken down amid a dispute over fuel pricing transparency, with Prime Minister Dr. Luc Mercelina revealing in Parliament that the utility company was unable to obtain detailed justification for several costs embedded in the fuel price ultimately paid by consumers.

The disclosure emerged during Friday's continuation of Parliament's long-delayed GEBE meeting, where Members of Parliament pressed the government for answers regarding high electricity bills, fuel clause charges, and the ongoing debate over consumer relief.

According to Mercelina, efforts to negotiate a new fuel agreement between GEBE and Sol stalled after the utility requested greater transparency regarding the various charges included in fuel pricing.

The Prime Minister said Sol maintained that several components of its pricing structure—including freight costs, insurance, procurement expenses and loss allowances—were pass-through costs that had to be absorbed by GEBE. However, when supporting documentation and detailed justification were requested, the information was not provided to GEBE's satisfaction.

Questions Over What Consumers Are Paying For

The fuel dispute comes at a time when residents are increasingly scrutinizing the fuel clause attached to electricity bills.

For years, consumers have argued that they have little visibility into how fuel-related costs are calculated, despite these costs being one of the largest components of monthly electricity bills.

During the parliamentary debate, the Prime Minister confirmed that GEBE sought additional clarification on the fuel pricing structure, as the costs are ultimately passed on to consumers through the utility's tariff system.

The issue has become even more sensitive amid growing public calls for relief and the formation of Consumer Protection St. Maarten (ACP-SXM), which has announced a public march to protest high electricity costs and fuel clause charges.

Sol Cites Global Market Pressures

According to the Prime Minister, Sol attributed significant increases in fuel-related charges to international developments, including the COVID-19 pandemic and the war in Ukraine.

However, Mercelina told Parliament that the increases were not sufficiently substantiated or transparent.

While Sol maintained that certain costs were legitimate pass-through expenses, the government's concern centered on the inability to independently verify how those charges were calculated and whether they accurately reflected market realities.

Monopoly Concerns Surface

Perhaps the most significant revelation during the debate was the government's acknowledgment of the structural challenges facing the fuel market on St. Maarten.

Mercelina noted that Sol's ownership of fuel storage infrastructure and its established distribution network create significant barriers for alternative suppliers seeking to enter the market.

The Prime Minister stated that these realities contribute to what many observers describe as a monopolistic environment, limiting competition and reducing GEBE's negotiating leverage.

The result is that GEBE remains heavily dependent on a single supplier for the fuel required to generate electricity for the country.

Government Seeking Long-Term Solutions

The Prime Minister stressed that the government is not treating the dispute as a political conflict but as a broader issue involving energy security, regulation, and market stability.

According to Mercelina, the Ministry of TEATT is currently working on a long-term strategy to strengthen GEBE's position in the fuel supply chain and reduce the utility's vulnerability to dependence on a single provider.

The government's objective, he said, is to ensure continuity of supply while creating conditions that provide greater stability and transparency in fuel procurement.

Why Fuel Costs Matter

The fuel dispute goes to the heart of the debate surrounding electricity prices.

Throughout the parliamentary session, the Prime Minister repeatedly argued that eliminating the fuel clause would not solve the underlying problem, as fuel remains the largest cost driver in electricity production.

As long as St. Maarten remains dependent on imported fossil fuels, fluctuations in fuel pricing will continue to influence electricity costs. The government has therefore linked long-term relief not only to tariff reform but also to diversification of energy sources and increased investment in renewable energy.

A Debate Far From Over

Friday's revelations are likely to intensify public scrutiny of both fuel procurement practices and electricity pricing.

For consumers, the central question remains straightforward: if fuel costs are driving electricity prices higher, how much of those costs are unavoidable, and how much should be subject to greater transparency and oversight?

That question is expected to remain at the forefront of public debate as Parliament continues its examination of GEBE and as consumers prepare to take their concerns directly to the streets.

The breakdown in negotiations between GEBE and Sol has now placed that issue squarely at the center of the national conversation.


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