ACP-SXM: US$70 Million GEBE engine investment may not translate Into lower bills

GREAT BAY--The Association for Consumer Protection St. Maarten (ACP-SXM) has raised concerns that NV GEBE's US$70 million investment in three new electricity generators may improve the reliability of the country's power supply without necessarily providing financial relief to consumers, unless longstanding issues surrounding fuel procurement, storage and electricity pricing are addressed.

In a statement issued Tuesday, ACP-SXM President Peggy-Ann Richardson questioned whether the anticipated efficiency gains from the new generators would translate into lower electricity bills, particularly while GEBE remains dependent on existing fuel supply arrangements.

Her comments follow the November 4 signing of agreements involving the Government of St. Maarten, GEBE and Finnish technology company Wärtsilä for the acquisition of three generators, each capable of producing 9.3 megawatts of electricity, for a combined capacity of 27.9 megawatts.

According to ACP-SXM, the approximately US$70 million investment includes US$42 million in financing obtained by government from the Netherlands through a 25-year loan carrying an interest rate of 2.43%, while GEBE is responsible for securing the remaining US$28 million.

While acknowledging the importance of modernizing GEBE's aging generation infrastructure and reducing the likelihood of load shedding, Richardson argued that consumers also need assurances that the investment will result in more affordable electricity.

"I have read every public statement made about this deal," Richardson said. "Not one of them promises the consumer a lower bill. GEBE spoke of efficiency and of easing the strain on an ageing fleet. Nobody spoke of the fuel clause. Nobody spoke of the household paying it."

Fuel Storage and Procurement Remain Central Concerns

Richardson identified GEBE's fuel purchasing arrangements and limited storage capacity as major issues that she believes must be addressed alongside the acquisition of new generators.

According to ACP-SXM, government has previously acknowledged that GEBE has limited influence over the price it pays for fuel. The association also maintains that the existing ownership and control of fuel storage and delivery infrastructure create barriers to competition among potential suppliers.

Richardson argued that greater fuel storage capacity could provide GEBE with additional purchasing flexibility and opportunities to negotiate more competitive fuel prices.

"The country has found US$70 million for engines, but has produced no funded, time-bound plan for the storage tanks that would let GEBE buy its own fuel, at its own price, from whoever offers the best deal," Richardson said.

She questioned why the investment in new generation equipment has not been accompanied by what the association considers a comprehensive solution to fuel procurement and storage constraints.

The association maintains that improvements in fuel efficiency alone will not necessarily provide the financial benefits consumers expect if the underlying fuel pricing arrangements remain unchanged.

Questions Over Fuel Clause and Consumer Savings

ACP-SXM also raised concerns about the calculation and transparency of GEBE's Fuel Clause, which forms part of consumers' monthly electricity bills.

The association pointed to an increase in the Fuel Clause from 0.36 guilders per kilowatt-hour in April 2026 to 0.45 guilders in May, representing an increase of approximately 25% in one month.

Richardson also referenced information previously disclosed by Prime Minister Dr. Luc Mercelina concerning an 8.5% factor used in electricity tariff calculations, which the association says has reportedly remained unchanged for approximately 35 years.

ACP-SXM further maintains that GEBE has not provided all the verified operational and financial information requested by Parliament since 2025.

Richardson questioned how consumers would be able to determine whether the new generators deliver measurable savings without greater transparency concerning the company's fuel costs and tariff calculations.

"If GEBE cannot explain the fuel clause today, why should any consumer believe that efficiency savings will be passed on in 2028?" she asked.

The new Wärtsilä generators are intended to improve electricity generation efficiency and strengthen the reliability of the power supply. However, the eventual impact on electricity tariffs will depend on several factors, including fuel consumption, procurement costs, operational expenses and the applicable tariff structure.

Consumer Protection Association Continues Legal Action

Richardson emphasized that ACP-SXM does not oppose the acquisition of new generators and recognizes the importance of improving electricity reliability following the country's experience with recurring load shedding.

However, she argued that improvements in infrastructure should also be accompanied by measures addressing affordability and consumer protection.

"Nobody is against new engines. This country suffered through load shedding and deserves a reliable grid. But reliability is not affordability, and a ribbon-cutting is not relief," Richardson stated.

The association also confirmed that its collective legal action against NV GEBE before the Court of First Instance remains ongoing.

That case involves concerns about the Fuel Clause, disputed customer balances and the disconnection of utility services while billing disputes remain unresolved.

Richardson said ACP-SXM intends to continue pursuing its concerns through available legal channels while advocating for greater transparency and accountability in electricity pricing.