ACP-SXM formally requests documents involving GEBE, SOL, and Seven Seas Water via public access law

GREAT BAY--The Association for Consumer Protection St. Maarten (ACP-SXM) has submitted a formal request for public information to the Minister of Tourism, Economic Affairs, Transport and Telecommunication, Grisha Heyliger-Marten, and the Minister of Public Housing, Spatial Planning, Environment and Infrastructure, Patrice Gumbs, seeking disclosure of documents related to fuel supply and water production contracts involving NV GEBE, SOL Antilles N.V., and Seven Seas Waters (St. Maarten) N.V.

The request was filed under the National Ordinance on Public Access to Government Information, known as the LOB, P.B. 2015, No. 33, under reference number ACP-SXM/LOB/2026/001.

ACP-SXM said the request is intended to obtain public access to documents that it considers directly relevant to consumer protection, utility pricing, transparency, and accountability in the governance of essential public utilities.

The request was addressed jointly to the Minister of TEATT and the Minister of VROMI. ACP-SXM stated that the Minister of TEATT is responsible for oversight of utility regulation and the Bureau of Telecommunications and Post St. Maarten (BTP SXM), while the Minister of VROMI holds responsibility for infrastructure and the public utilities sector, including matters connected to utility service sustainability and water production.

According to ACP-SXM, because NV GEBE performs a public function and operates in an area that directly affects households and businesses, its contractual obligations and commercial arrangements are matters of public interest that should be subject to transparency and accountability.

The formal request focuses on two principal contractual arrangements.

The first is the fuel supply arrangement between NV GEBE and SOL Antilles N.V. ACP-SXM stated that SOL enjoys an exclusive monopoly over the supply of Light Fuel Oil and Heavy Fuel Oil used in electricity generation. The association further stated that parliamentary debates and public statements by current and former government officials have confirmed the existence of a long-term exclusive contract between NV GEBE and SOL, reportedly in excess of thirty years.

ACP-SXM stated that the terms of this arrangement have not been disclosed to the public. According to the association, the arrangement has been cited in relation to concerns about fuel pricing, tariff calculations, and the ability of NV GEBE to seek competitive pricing for fuel supply.

The second arrangement identified in the request is the water production contract between the Government of St. Maarten and Seven Seas Waters (St. Maarten) N.V. ACP-SXM stated that Seven Seas operates as the exclusive producer of potable water and that the electricity cost for this water production is supplied by NV GEBE.

ACP-SXM referred to parliamentary disclosure in June 2022, which it said confirmed that Seven Seas does not pay the fuel clause charged to other GEBE consumers, pursuant to a contract executed in 1997. ACP-SXM described this as a contractual exemption and said the arrangement raises questions about the extent to which ordinary residential and commercial consumers carry the full cost of the fuel clause.

The association stated that the arrangements identified in its request directly affect every household and business in St. Maarten that receives electricity or water from NV GEBE. It said the financial impact on the public has been independently assessed as substantial, with consumer overcharges estimated in the millions of United States dollars over the relevant periods.

ACP-SXM is requesting complete copies of the full text of the fuel supply agreement or agreements between NV GEBE and SOL Antilles N.V., including all annexes, addenda, amendments, renewals, and correspondence related to pricing, exclusivity, tank storage access, and pass-through cost arrangements, from the initial execution date to the present.

The association is also requesting any regulatory approval, ministerial decision, government resolution, or other authorization that approved or ratified the exclusive fuel supply arrangement between NV GEBE and SOL Antilles N.V. This includes any approval granted under the Price Ordinance or other sector-specific legislative instruments.

With respect to water production, ACP-SXM is requesting the full text of the water production contract between the Government of St. Maarten and Seven Seas Waters (St. Maarten) N.V., including the original 1997 agreement and all subsequent extensions. The request also includes any side agreements concerning the fuel clause exemption reportedly enjoyed by Seven Seas.

ACP-SXM is further requesting BTP SXM regulatory assessments, tariff review reports, advice memoranda, and communications relating to the fuel clause, the SOL contract, or the Seven Seas fuel clause exemption. The association said this includes any investigation mandated by Parliament in connection with consumer relief and fuel cost reduction.

The organization is also seeking correspondence between the Ministry of TEATT, the Ministry of VROMI, NV GEBE, the NV GEBE Supervisory Board, the Ministry of Finance, and the Council of Ministers concerning renegotiation, renewal, termination, or competitive tendering of the fuel supply contract with SOL Antilles N.V. from 2020 to the present.

In addition, ACP-SXM is requesting audit reports, financial analyses, and third-party assessments concerning the fuel clause calculation methodology, the SOL pass-through cost structure, and the financial impact of the Seven Seas fuel clause exemption on NV GEBE’s tariff structure from 2015 to the present.

ACP-SXM stated that the information sought is relevant to the constitutional and statutory rights of the people of St. Maarten. The association said electricity and water are essential services and that utility pricing structures should not be shielded from public scrutiny when they are determined, in whole or in part, by undisclosed exclusive contracts entered into by a state-owned company.

The association also stated that the SOL arrangement, as described in its request, raises questions about competitive market principles. ACP-SXM said that when a public utility is locked into a single fuel supplier without transparency or competitive benchmarks, consumers bear the risk and cost of that arrangement without access to the underlying documents needed for informed public review.

Regarding the Seven Seas arrangement, ACP-SXM stated that the reported fuel clause exemption may represent an implicit cross-subsidy paid by ordinary consumers. The association said every residential and commercial consumer who pays the full fuel clause on their NV GEBE electricity bill may, in effect, be carrying fuel costs from which a private water producer is contractually exempt.

ACP-SXM further argued that the public interest in disclosure outweighs any commercial confidentiality interest. The organization stated that NV GEBE is not a private company operating in an open market, but a state-owned monopoly performing a public function and funded by consumer tariffs approved by government.

The association also noted that public access to the documents is necessary for legislative and regulatory oversight. It stated that Parliament has mandated BTP SXM to investigate fuel costs and that the Integrity Chamber has been petitioned. ACP-SXM said these oversight mechanisms cannot function effectively without access to the underlying contractual documents.

The association also stated that if either Minister determines that the statutory period must be extended, ACP-SXM requests written, motivated notification of the extension and the reasons for it before the expiry of the initial three-week period.

If any portion of the requested documents is withheld, ACP-SXM requested a written decision identifying the legal ground for withholding, the specific portions being withheld, and the proportionality analysis conducted under the LOB. The association also requested that partial disclosure be provided where non-exempt portions of documents can be separated.

ACP-SXM reserved all rights to challenge any refusal, partial refusal, failure to respond within the statutory period, or unlawful refusal. The association stated that this may include administrative appeal and, if necessary, further legal proceedings before the competent courts of St. Maarten.

ACP-SXM also reserved the right to refer any failure to respond, or unlawful refusal, to BTP SXM, the Integrity Chamber, the Public Prosecutor of St. Maarten, and relevant Kingdom oversight bodies, as appropriate.

The letter was signed by Peggy-Ann Richardson, President and Chairperson of ACP-SXM.

Copies of the letter were sent to the Minister of Public Health, Social Development and Labor, the Prime Minister of St. Maarten, the Bureau of Telecommunications and Post St. Maarten, the Integrity Chamber of St. Maarten, and the Public Prosecutor’s Office of St. Maarten.

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