PHILIPSBURG:--- Former Minister of Finance Richard Gibson Sr. has made explosive revelations about NV GEBE, the island's sole electricity provider. In a scathing critique, Gibson has exposed the deceptive practices behind the notorious "Fuel Clause," which has plunged St. Maarten's citizens into financial despair amidst ongoing power outages. For months, St. Maarten has been grappling with relentless power outages. NV GEBE has cited load shedding due to deterioration and catastrophic failures, including a significant explosion and fire at the Cay Bay Power Plant. These issues have left the company unable to meet the island's electricity demands, but according to Gibson, the crisis runs much deeper than just technical failures. Gibson, leveraging his extensive experience in finance, has unearthed disturbing facts about NV GEBE's Fuel Clause. "The people of St. Maarten are being hooked," Gibson declares, highlighting the lack of transparency in determining this fee. He explains that the Fuel Clause, a separate charge from the energy consumption fee, often doubles or even triples the monthly electricity bill. "The bill mentions what the consumption is, and then your consumption is increased by your fuel clause, which equals or exceeds your consumption," Gibson explains. "That way, you pay two or three times more," Gibson reveals that the Fuel Clause is being used to mask additional charges unrelated to fuel prices on the global market. He points out several dubious inclusions in the Fuel Clause, such as Through Port Fees. "These should be straightforward charges, yet there is no clarity on who receives these payments." He also pointed out another section of the Fuel Clause, "Oil Loss During Delivery and says consumers are unfairly charged for oil lost during transport, if any, a cost that the supplier, SOL, should bear. According to Gibson, Turn Over Tax is inexplicably charged twice in the Fuel Clause calculation.
"What they are doing is incorporating other elements into the fuel clause," Gibson asserts. "Aruba and St. Kitts also import oil and don't pay anything on the fuel clause." Gibson also sheds light on SOL's monopoly over fuel supply to NV GEBE. "Some politicians paved the way for SOL to have this monopoly," he states, questioning the legitimacy of SOL's 30-year contract. Despite the possibility of sourcing cheaper fuel elsewhere, NV GEBE is locked into buying from SOL due to their exclusive ownership of the fuel (tanks) storage facilities.
"This situation cannot sustain itself; it has to change," Gibson argues. "What we are paying compared to the region is ridiculous." Gibson passionately describes the severe impact of NV GEBE's practices on the people of St. Maarten. Inflation, exorbitant electricity costs, and the multiple daily loadshedding have left many struggling. "On the Dutch side, we don't only have inflation; we have GEBE," he laments. Travel advisories from the UK and Canada warn visitors of potential power outages, damaging the island's reputation and economy.
Businesses are suffering, people cannot enjoy their lives, and taxi drivers are losing jobs. Gibson stresses that NV GEBE and the government must be held accountable for the "gross negligence" that has caused widespread suffering. Gibson calls on the government to compensate citizens for their losses. "The prime minister said GEBE has no debts and no loans. On that basis, you can compensate the people for the grief caused by gross negligence."
He also criticizes the failure to invest in green energy. A European Commission report in 2021 recommended a shift to green energy, which could reduce electricity costs by 30%. Despite Naf.7.7 million guilders being allocated for this transition, progress has yet to be made.
According to Gibson Senior, the secrecy and deceit surrounding NV GEBE's Fuel Clause must end, and the monopoly held by SOL needs to be reevaluated. Most importantly, the government must step up to support the citizens and businesses of St. Maarten, ensuring a sustainable and fair energy future. "The people of St. Maarten deserve transparency, fairness, and a government that truly has their best interests at heart," Gibson concludes. "It's time for a change."
