PHILIPSBURG:--- As I reflect on the current situation with GEBE, it appears that we have reached a stalemate reminiscent of previous impasses. Approximately a year ago, I wrote to the government in a similar situation and expressed concerns regarding the imbalance of power between the various stakeholders in a government-owned entity, which includes the shareholder, supervisory board of directors, and management. Last year’s stand-off was related to the crisis in electricity production and supply.
Even then, the information provided by GEBE to parliament via the respective ministers was sketchy. Commitments to provide financial information on the company were not met.
Today, I reiterate the call for attention to the roles and corporate responsibilities of each party involved in the corporate structure of GEBE. In my opinion, the current stalemate is counterproductive to the original intent of seeking relief for the St. Maarten populace. The primary focus should remain on addressing the pressing issues of high utility costs and the unresolved billing fiasco.
Despite disagreements, there is a clear consensus on the need for relief in utility costs, particularly for those on fixed income and minimum wage earners. As I have consistently advocated, assistance to needy households cannot be solely confined to wage indexing; it must be part of a comprehensive package of measures, including the cost of utilities.
The drive for consumer relief led to the commissioning of a report by the Government/Shareholder to examine relief options. Still, GEBE’s response has shifted the bulk of the responsibility back to the government, without any substantiation. This exchange is taking place in an environment of mistrust, which is detrimental to the process and consumers awaiting clarity on the proposed measures.
Furthermore, the review and upgrade of corporate governance rules, which is long overdue, remains stalled. Since 2009, only sporadic updates have been made, for example, in the case of PJIA.
In light of this, I have proposed to the Prime Minister that the following measures be enforced, directly where it is the responsibility of the Government and indirectly via the company as its Shareholder.
Key amongst the established recommendations:
1. Establish an independent regulator to oversee tariffs and protect consumers.
2. Enforcement of immediate tariff relief by GEBE, including correcting fuel cost allocations, revising water tariffs, and granting direct relief on a per-kilowatt-hour basis.
3. Investigate the issue of social tariffs and assess without delay the financial state of GEBE.
4. Require quarterly reports from GEBE, including fuel procurement data.
5. Collaborate with GEBE to urgently stabilize fuel prices.
In light of the current financial uncertainty of the company, I believe it is essential to conduct a financial quick scan to determine the economic state of GEBE and its ability to afford the proposed measures.
While I do not believe that the concession fee should be relinquished, the government can consider holding off on collecting or offsetting the concession fee to allow for immediate relief, only until we gain a better understanding of GEBE's financial situation.
The government must remain focused on addressing the current crises at our electricity company as its Shareholder and not be sidetracked by yet another dispute between the shareholder and the supervisory board of directors at NV. GEBE.
