PHILIPSBURG:--- Prime Minister Dr. Luc Mercelina faced repeated questions on Wednesday about whether GEBE should increase consumer relief to reflect alleged excess collections through its fuel clause, while announcing that contracts for new generators could be signed within the coming four weeks.
During the October 14 Council of Ministers press briefing, the Prime Minister said the generator contracts remain under legal review, although the Dutch loan financing is already available in a bank account in Sint Maarten.
On electricity bills, Mercelina defended GEBE’s 1.5 million guilder contribution toward relief for elderly and vulnerable residents. However, the questioning exposed an issue that his responses did not conclusively settle: whether previous fuel-clause collections exceeded the amount required to recover fuel costs, and what that would mean for consumers.
Reporter repeatedly questions fuel-clause collections
The reporter asked whether relief could be increased in light of earlier reports that, according to the question, indicated GEBE had collected more through the fuel clause than necessary.
The question distinguished between the cost of purchasing fuel and the amount recovered from consumers through their electricity bills.
The reporter described the fuel clause as a mechanism intended to pass fuel costs through to consumers and asked why the relief offered was lower than the alleged excess collections identified in previous assessments.
Those assertions were raised during the briefing. The exchange did not present the reports, their figures, or their methodologies.
Mercelina initially responded by emphasizing SOL’s role in determining the fuel costs charged to GEBE.
“The fuel cost is more a matter of SOL than GEBE,” he said.
He pointed to international oil prices and SOL's storage arrangements, saying GEBE must pay the fuel bills it receives and incorporate those costs into electricity tariffs.
Fuel supply costs and consumer billing remain separate questions
The reporter returned to the issue, explaining that the question concerned whether GEBE’s fuel-clause charges were higher than necessary, rather than what SOL charged the utility.
In response, Mercelina referred to the analysis he had commissioned involving BTP and a regulatory counterpart in Curaçao to examine the validity of consumer billing.
He said further work is underway to establish the appropriate formula for calculating the fuel clause and tariffs.
That response acknowledged the need to examine how consumers are billed. It did not establish during the briefing whether excess collections had occurred, their value or whether any amount should be returned.
The distinction remains central to the discussion: explaining the price GEBE pays for fuel does not, by itself, resolve whether the amount collected through the fuel clause accurately reflects the costs it is intended to recover.
Unpaid bills cited against additional relief
Pressed again on whether GEBE could increase relief beyond 1.5 million guilders, Mercelina gave a conditional response.
“If that is the case, that is possible,” he said, before asking how the utility should deal with the millions in outstanding consumer bills.
He argued that revenue reflected in the company’s accounts does not necessarily mean that the corresponding money has been collected. Outstanding payments, he said, affect GEBE’s ability to responsibly provide additional relief.
The Prime Minister reiterated his appreciation for the utility’s existing contribution under difficult circumstances.
However, the exchange did not provide a financial breakdown showing how unpaid bills relate to the alleged excess fuel-clause collections or how the 1.5 million-guilder relief amount was determined.
Without that information, the public cannot assess from the briefing alone whether a larger relief package is financially possible.
Prime Minister asks SOL to contribute
Mercelina said he had also asked SOL to consider contributing toward consumer relief during their recent meeting.
He described GEBE’s contribution as an example and urged the fuel supplier to consider assisting residents facing high electricity costs.
SOL made no commitment, and no contribution amount or implementation date was announced during the question-and-answer session.
The request therefore remains an appeal for assistance rather than an additional relief measure confirmed to the public.
Tariff legislation still moving through approval process
Mercelina said draft legislation is being prepared to provide a framework for regulating tariffs and controlling the margins within which consumers can be billed.
According to his explanation, the draft must proceed through the Council of Ministers, the Council of Advice and Parliament.
He said BTP is engaging with GEBE, SOL, and other stakeholders to review the components of the fuel clause and electricity tariffs and develop a suitable billing formula.
Under the arrangement he described, BTP would provide technical advice to the Minister of TEATT to support tariff decisions.
The Prime Minister did not announce a date for the legislation to reach Parliament or for a revised formula to take effect.
Generator purchase remains under legal review
On the purchase of new generators, Mercelina said three legal teams are reviewing the contracts: one in the Netherlands, one representing GEBE and one representing the government.
He stressed that the transaction involves millions in public funds and requires careful scrutiny.
“We have to make sure that we do not make mistakes in the ordering of the generators,” he said.
Mercelina indicated that signing could take place within the next four weeks, provided the reviewed contract drafts arrive on time.
That is a conditional target for signing. It is not a confirmed delivery or commissioning date.
Although the reporter specifically requested an updated delivery timeline, the Prime Minister did not provide one in his response.
Dutch financing is a loan, not a grant
Asked to clarify the financing arrangement, Mercelina confirmed that the money from the Netherlands is a loan.
He recalled the interest rate as approximately 2.43 percent and said the funds are already held in Sint Maarten.
“We have the money already,” he stated.
The remaining step, he explained, is to finalize a responsible contractual agreement. Payments would then be made in phases according to the contract until the generators are delivered.
His response did not identify the supplier, the number or capacity of the generators, the final purchase price or the detailed payment schedule.
The announcement nevertheless clarified that access to the financing is not the outstanding obstacle he identified. Completion of the contractual review remains the immediate step before signing.
Solar project advances without a firm timetable
The reporter also asked about renewable-energy projects the Prime Minister previously discussed.
Mercelina said restoring reliable electricity was his first priority after the country’s power-supply difficulties. He attributed those problems in part to failures to maintain and replace generators in time.
Alongside restoring conventional generation, he said the government is examining alternative energy options.
One proposal involves installing solar panels on roofing over an existing parking area along Pond Road. The roof would provide shade for vehicles while supporting solar generation.
Mercelina said he had seen drawings for the project but declined to commit to an implementation date without checking the planning.
He also described net-metering policy as an area requiring cooperation between government and GEBE, without announcing a completed policy or adoption timetable.
Consumers await figures and delivery dates
The briefing provided a potential signing window for the generator contracts and confirmed that loan financing is available. It did not set a timeline for when the equipment will arrive or begin supplying electricity.
On the fuel clause, Mercelina outlined regulatory work, defended GEBE’s relief contribution, and pointed to unpaid bills. He did not conclusively answer the repeated question about alleged excess collections.
For consumers, the outstanding information is concrete: the findings of the billing assessments, the basis for the relief amount, the formula to be applied going forward, and the delivery and commissioning schedule for the new generators.
Those details will determine how the government’s announcements translate into more reliable electricity and measurable relief on household and business bills.