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.

 On Wednesday, August 27, 2025, at approximately 7:30 a.m., the Police Force of Sint Maarten responded to a traffic accident that occurred on A.Th. Illidge Road at the intersection with Nazareth Road. The collision involved a black Suzuki Vitara and a blue Yamaha motorcycle without a license plate.

PHILIPSBURG:--- Preliminary investigation indicates that the motorcyclist was traveling on A.Th. Illidge Road coming from the Tata Bus Driver roundabout towards Madrid Road. At the same time, the driver of the Suzuki Vitara was traveling on Nazareth Road towards A.Th. Illidge Road. While attempting to make a left turn onto A.Th. Illidge Road, the driver of the Vitara failed to give right of way. As a result, the motorcycle collided with the right front side of the Vitara.A

As a result of the impact, the rider of the motorcycle fell to the ground and sustained injuries. He was transported to the Sint Maarten Medical Center (SMMC) for medical treatment and was later transferred to the French side for further care. The rider was not wearing a helmet at the time of the accident.

The Police Force of Sint Maarten is again addressing the increasing presence of dirt bikes and other off-road motorcycles being operated illegally on public roads. These vehicles are technically designed for use on tracks and off-road conditions and are not intended for safe use on public roads. Their use poses a danger both to the riders themselves and to other road users.

KPSM strongly warns riders of such off-road bikes that they will be subject to enforcement measures if caught riding on public roads. The community is reminded that road safety is a shared responsibility, and that compliance with traffic regulations and the proper use of safety equipment—such as helmets—is essential to prevent serious injuries and save lives.

KPSM Press Release.

Caribbean Region:---  Only one week remains to enter EPIC’s first-ever Seas & Scenes: Love the Caribbean Photo Contest 2025, hosted in partnership with Caribbean Compass magazine. Time is running out, and this is your chance to share an image that shows why the Caribbean matters.

The contest invites residents and visitors to celebrate people, places, and wild nature through photography and storytelling. EPIC’s mission is to protect the Caribbean’s unique environments and cultures through science, education, advocacy, and stewardship (S.E.A.S). Seas & Scenes turns that mission into pictures and stories that amplify across the region, build awareness and pride, and inspire action.

More than $1,000 in total cash prizes are available. Audience Choice, decided by public vote, awards $300 for first, $100 for second, and $50 for third. Sailing & Yachting Adventures awards $200, $100, and $50. Caribbean Nature and the People Who Love It awards $200, $100, and $50. Up to fifteen Judges’ Choice recognitions will also be announced. All cash prize winners receive a one-year digital subscription to Doyle Guides.

Running until August 31, 2025, the contest invites photographers of all skill levels—whether professionals or smartphone users—to submit up to three original images that highlight Caribbean nature, culture, or conservation in action, then add a story that helps bring the moment to life. Even if you are not a photographer, everyone is invited to vote for their favorite photo and to engage through social media with the stories shared by the photographers on the contest website. Enter or vote at epicislands.org/photo-contest-2025.  

Winning entries will be chosen by a panel of judges from throughout the region, whose expertise includes photography, nature conservation, and Caribbean connections. Winners will be featured on Caribbean Compass and EPIC platforms, continuing a longstanding collaboration between the two organizations to celebrate the Caribbean’s unique heritage and a shared mission to inspire love for the region’s natural and cultural treasures while raising awareness of the urgent need to protect them.

"The photo gallery already reads like a love letter to the region."

– Elaine Lembo, Editor in Chief, Caribbean Compass magazine

The contest is made possible by presenting sponsor IGY Marinas, a longtime advocate for sustainable tourism and marine stewardship in the Caribbean.

"Sponsoring the EPIC Seas & Scenes Contest is a chance to invest in the future of our oceans and inspire the next generation of environmental stewards. We are very proud to support a creative platform that celebrates the beauty of the Caribbean while raising awareness about the need to protect it," said Andy Caballero, Regional Manager Caribbean & Latin America at IGY Marinas.

Contest ends August 31, 2025. To enter, vote, or learn more, visit epicislands.org/photo-contest-2025.

PHILIPSBURG:--- The people of Sint Maarten are tired of excuses. They're tired of promises. And most of all, they're tired of paying inflated electricity and water bills while their government opts for endless studies instead of decisive action.

The Council of Ministers' latest decision regarding GEBE relief measures reads like a broken record: more studies are needed. This response comes despite having a comprehensive 40-page report from BTP and RAC that already exposes the glaring problems in our energy sector. How many more reports do we need before someone has the courage to act?

The Uncomfortable Truth About Our Energy Monopoly

Let's call it what it is – the energy and water markets in Sint Maarten are controlled by monopolistic suppliers who have been setting their own rules for years. SOL controls fuel imports, GEBE controls electricity and water distribution, and Seven Seas controls water production. These companies operate without meaningful oversight, free to determine tariffs at their discretion while the people bear the cost.

The BTP/RAC report reveals a damning reality: "For many years the main operators, SOL and GEBE, have been in a position to unilaterally determine the utility tariffs. This has resulted in a lack of transparency in tariff setting and consequently a diminished level of trust by the public."

This isn't just poor governance – it's a betrayal of public trust.

The Numbers Don't Lie

While government debate the need for more studies, the facts are already on the table. The report shows that between 2022-2024, GEBE generated a surplus of approximately 12.6 million guilders from the fuel clause alone. That's 12.6 million guilders in excess charges paid by residents and businesses – money that should have stayed in their pockets.

Even more troubling, the report found that "the current formula for determining the electricity tariffs could not be validated." We're paying bills based on calculations that can't even be properly verified.

The report makes crystal clear recommendations that could provide immediate relief:

• Regulate fuel prices for electricity generation through existing procedures

• Establish independent oversight of tariff calculations

• Correct the flawed fuel clause formula that has been overcharging consumers

• Implement transparent cost allocation between electricity and water services

These aren't radical suggestions requiring years of study – they're basic regulatory practices used worldwide.

The SOL Connection Demands Investigation

The Council of Ministers must heed the call for an in-depth study of SOL's fuel pricing and markup practices. The report shows that while SOL's base prices generally follow international markets,  “an increase in the other tariff components has been noted over these years."

What are these mysterious "other components"? Why are they increasing? The people deserve to know exactly what they're paying for when SOL charges GEBE for fuel that ultimately appears on every electricity bill.

The report notes that SOL and GEBE aren't even in agreement on fuel supply terms, creating "operational risks... environmental risks and eventually continuity risks for the energy provision as a whole." Yet somehow, consumers continue paying the price for this dysfunction.

Enough Studies – Time for Action

The BTP/RAC report provides 13 detailed recommendations for reform. These solutions exist right now. What we lack isn't information – it's political will.

The Council of Ministers' decision to commission more studies while people struggle with high energy costs is not just disappointing – it's insulting. How many reports do we need to confirm what everyone already knows? That our energy sector operates without proper oversight, that consumers are being overcharged, and that meaningful regulation is long overdue?

The people demand immediate action on three fronts:

1. Launch the comprehensive SOL study immediately – Every fuel delivery, every markup, every additional cost component must be scrutinized and justified.

2. Implement regulatory oversight now – BTP SXM should begin monthly reviews of GEBE's tariff calculations while the COM deliberates on formal regulatory frameworks.

3. Correct the fuel clause formula – The 12.6 million guilder surplus proves the current system is broken. Fix it and return excess charges to consumers.

The energy crisis in Sint Maarten isn't caused by a lack of studies – it's caused by a lack of action. The people can't wait for another report while they choose between paying electricity bills and buying groceries.

The Council of Ministers has the tools, the recommendations, and the legal authority to act. The only question remaining is whether they have the will to use them.

The people of Sint Maarten are watching. And they're running out of patience.