~ Utility relies on internal practices while new collection and disconnection rules are still being drafted~
PHILIPSBURG: --- NV GEBE is disconnecting customers without a formally approved disconnection policy, according to information presented in Parliament on Friday, raising new questions about consumer protections as public frustration over electricity costs continues to grow.
The disclosure emerged during the continuation of Parliament's long-delayed GEBE meeting when Prime Minister Dr. Luc Mercelina responded to questions from Members of Parliament regarding the utility company's collection practices and the rights of consumers facing disconnection.
According to the Prime Minister, GEBE currently relies on internal operational practices rather than a formally approved standalone disconnection policy.
"NV GEBE applies disconnections based on internal operational practices rather than a formally approved standalone disconnection policy," Mercelina told Parliament.
The revelation comes as residents continue to complain about soaring electricity bills, fuel clause charges, and increasing financial pressure on households struggling to keep up with utility payments.
New Policy Still Under Review
The Prime Minister disclosed that an external consultant has been hired to conduct a comprehensive review of GEBE's collection procedures and to draft a legally sound collection and disconnection policy.
The proposed policy is expected to establish clear procedures for customer notification, payment arrangements, protection for vulnerable customers, and the specific circumstances under which disconnections may occur. The document remains under review by management and legal advisers and is expected to be submitted to GEBE's Supervisory Board later this month.
For consumer advocates, the admission raises questions about how disconnections have been carried out in recent years and whether sufficient safeguards have existed for vulnerable households.
What Notices Are Consumers Receiving?
Responding to further questions, Mercelina stated that GEBE notifies customers through several channels before disconnection takes place.
The utility has resumed displaying outstanding balances on customer invoices and has reinstated formal dunning notices sent to customers with overdue accounts. Those notices formally place customers in default and include statements detailing unpaid balances.
GEBE also uses public announcements and social media to communicate with customers regarding outstanding accounts.
However, Members of Parliament questioned whether general public announcements alone satisfy legal standards for notification and due process before a household loses access to electricity or water.
Disconnection as a "Last Resort"
The Prime Minister insisted that GEBE already applies disconnections only as a measure of last resort.
According to Mercelina, customers facing disconnection are generally those with outstanding balances dating back to 2025 or earlier. He further stated that customers who contact GEBE and enter into a payment arrangement are typically reconnected on the same day.
"Disconnection is applied as a measure of last resort," the Prime Minister told Parliament.
The new policy currently being drafted is expected to formally embed that principle and align GEBE's practices with national and international standards regarding utility disconnections.
Relief Exists for Some Vulnerable Groups
During the same debate, Mercelina disclosed that certain targeted relief measures are already in place.
According to the Prime Minister, GEBE operates a Senior Citizen Relief Program costing approximately NAf. 600,000 annually. In addition, a Social Relief Fund introduced in December allows vulnerable consumers to apply for assistance through social service channels.
He argued that these measures demonstrate that some forms of targeted assistance already exist, even as broader relief measures remain under discussion.
Payment Plans Available
The Prime Minister also outlined payment arrangements currently offered by GEBE to customers struggling with outstanding balances.
Residential customers are generally required to make an upfront payment of between 10 and 25 percent of the outstanding amount, with the remaining balance spread over a period of up to 24 months.
The availability of payment plans, the government argues, provides consumers with an opportunity to avoid disconnection while gradually bringing accounts back into good standing.
Growing Public Scrutiny
The issue of disconnections has taken on added significance amid mounting public concern over electricity costs and fuel clause charges.
Consumer groups and residents have increasingly questioned whether households should be disconnected while disputes continue regarding fuel pricing, tariff structures, and potential relief measures.
The matter is expected to receive even greater attention in the coming days as Consumer Protection St. Maarten (ACP-SXM) prepares for a public demonstration on Monday calling for action on electricity costs and consumer protections.
Friday's parliamentary session made one thing clear: while GEBE says disconnections are used only as a last resort, the formal rules governing when and how that can happen are still being written.