Philipsburg:--- Island Councilman Roy Marlin in a press release said while the world financial and economic situation is showing signs of stabilization and in some parts the start of a recovery, Sint Maarten, particularly during this low season is still feeling the pinch of this financial and economic downturn.
Marlin said it is expected of the government to come with proposals that can stimulate economic growth and help the community in general to tide over the negative economic and financial trend that Sint Maarten is experiencing.
One solution that will directly affect the pockets of the working class of Sint Maarten is regulating the price of electricity.
In the past, GEBE was allowed to adjust the monthly fuel clause for electricity without any approval from government. Marlin explained.
Fact is that the current fuel clause calculation for GEBE is based on an outdated system. While they all underscore the need for a new system of calculating the fuel clause, the present system is being misused by the management of the company. Case in point is the recent decision by the Managing Director of the company to remove the fuel clause relief without consultation with the supervisory board.
When the Managing Director of GEBE removed the fuel clause relief without approval of the supervisory board a couple of months ago, DP Commissioner Roy Marlin got the ball rolling by requesting the legal affairs department of government to look into this matter in order for the Executive Council to take a formal stand towards GEBE on this issue.
Councilman Roy Marlin: “With government taking an active role in determining if increases will be allowed yes or no, GEBE will have to justify their request with facts and figures, especially on the fuel consumption operations of the power plant before permission is granted. Marlin said since the change of government this matter is seemingly not being pursued. It is urgent that government based on the Ordinance that regulates prices, also commences with the regulation of the electricity prices to the consumer, similar to Curacao were Aqualectra cannot adjust the electricity prices without approval of the Executive Council.”
At this point and time, seeing the continuous rise in the electricity invoices to households and businesses over the past couple of months, it is now imperative that the NA/Heyliger Executive Council picks this matter up post haste .
Price regulation on electricity by the Executive Council also give the guarantee to the consumer who ultimately pays the bill, that management will have to pursue the most efficient course of producing electricity in the most effective manner possible before knocking on the doors of government to increase the electricity rate. According to information reaching him, the operations of our power production facility is now heavily dependent on light fuel (diesel) which is much more costly than operating the power plant on the much cheaper heavy fuel. Because of inefficiencies in the operations of the power plant, lack of timely maintenance and other such factors, the consumer is forced to carry the financial brunt of bad business decisions by GEBE’s Managing Director.
The start up of the two new 12 megawatt units slated for the end of the year will somewhat alleviate the situation, but without timely maintenance and efficiently using the entire power production plant in such a fashion that the power plant facility can produce the major part of the electricity needs of St. Maarten, by means of heavy fuel, we may be back to square one within a couple of months after start up of these units, as they will only guarantee approximately 25 to 30% of the total power needs of the Island. Nothing less than Government stepping in and using its authority to regulate the price of electricity will bring about the much-needed relief to the consumer in these hard economic times.
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