MP Ottley meets with PM, presents interim GEBE relief measures

GREAT BAY--Member of Parliament Omar Ottley presented Prime Minister Dr. Luc Mercelina with proposed interim measures on Tuesday aimed at addressing costs affecting NV GEBE consumers while government works toward a longer-term legal framework for regulating electricity and water tariffs.

Ottley and Mercelina met on September 15 to discuss the proposal, following an earlier commitment by the Prime Minister during the 2026 budget debate to meet with the MP and explore possible relief measures for residents. Ottley welcomed Mercelina’s willingness to work across political lines on the issue.  The meeting had been publicly announced in August after Mercelina extended the invitation during the budget debate.

“GEBE will take care of GEBE, but the Government has to take care of the people,” Ottley said following Tuesday’s discussion.

At the center of Ottley’s proposal is his call for government to examine what can be done immediately under the existing Price Ordinance, rather than waiting exclusively for the completion of a National Decree containing general measures, commonly referred to as an LBHAM, to regulate utility tariffs.

Ottley said that if government and NV GEBE maintain that electricity and water tariffs can only be directly regulated through an LBHAM, existing legal tools should still be examined for measures that could reduce or better control costs affecting consumers in the meantime.

According to Ottley, development of the required LBHAM could take at least a year. He argued that households cannot be expected to wait that long for measures addressing utility costs and transparency.

His first proposal is for government to examine whether the Price Ordinance can be used to regulate the price and profit margin on fuel supplied to NV GEBE for electricity generation.

“If there are concerns about regulating the electricity tariff directly through the Price Ordinance, then we should look at what can be done immediately to address one of the major costs that impacts GEBE’s electricity generation,” Ottley said.

Prime Minister Mercelina committed during the meeting to discuss with SOL the possibilities surrounding regulation of the profit margin on fuel sold to NV GEBE for electricity generation, according to Ottley’s statement.

The proposal comes as electricity costs and the calculation of NV GEBE’s fuel clause remain under increased scrutiny. The company increased its fuel clause to XCG 0.49 per kWh in July, citing fluctuations in international fuel prices and St. Maarten’s dependence on imported fuel for electricity production.

Government has also recently strengthened formal oversight of NV GEBE. In May, the Bureau Telecommunication and Post, BTP, was formally designated to supervise the company’s electricity concession, including tariff and fuel-clause matters.

In July, BTP informed the TEATT Minister that it had not received all of the supporting information required to validate the latest fuel-clause adjustment before the XCG 0.49 rate was introduced, and requested further substantiation from NV GEBE.

Ottley’s second proposed interim measure focuses on water tariffs. He said government should consider using the Price Ordinance to provide greater transparency around maximum water rates so consumers have clearer information about the highest tariffs that can reasonably be charged.

The MP said his proposal is not intended to replace the longer legislative process. Instead, he wants government to pursue both tracks at the same time.

Under that approach, work could continue on the legal framework needed for long-term regulation of electricity and water tariffs, while government simultaneously considers measures available under existing legislation to address costs and improve transparency now.

A follow-up meeting is expected to include Prime Minister Mercelina, the Minister of Tourism, Economic Affairs, Transport and Telecommunication and MP Ottley. The discussion is expected to examine additional options and whether the proposals can be implemented as temporary measures while the necessary legislation is being developed.

Ottley stressed that he views immediate action and long-term legislation as complementary rather than competing approaches.

He said government should continue constructing a permanent regulatory framework while also taking practical steps that could provide greater transparency and address costs affecting consumers in the present.

The issue of who has authority to establish and supervise electricity tariffs has received increasing attention over the past year. Questions have been raised in Parliament about the legal basis for tariff setting and the need for the required regulatory instruments, while government has begun implementing a separate supervisory framework through BTP under the Electricity Concession Ordinance.

Ottley said Tuesday’s meeting represented progress toward finding a solution and indicated that he intends to continue pursuing measures aimed at reducing the financial pressure facing consumers.

According to the MP, the Prime Minister and his team expressed a willingness to move the discussion forward, with the next stage expected to focus on whether regulation of fuel margins and other interim options can be practically and legally implemented while the broader utility regulatory framework is being developed.

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