~NA parliamentarian questions continued fuel dependence, warns renewable-energy market is expanding without regulations.~
PHILIPSBURG: --- National Alliance Member of Parliament Darryl York has questioned whether financing secured for new GEBE generators is still sufficient to purchase the equipment, warning that Sint Maarten could be repaying a loan while rising prices place the intended generators beyond the original budget.
York criticized the country’s continued dependence on diesel generation and asked why the approximately NAf. 70 million associated with GEBE’s generation needs was not used to accelerate Sint Maarten’s transition to renewable energy.
The MP said the financing was secured while the country faced an electricity-generation crisis and urgently needed additional capacity. However, he questioned whether delays in making and executing a final decision have eroded the value of the financing.
“Yesterday’s price is not today’s price,” York said during a radio interview on Wednesday.
According to York, ordering major generators requires money to be committed while prices and manufacturing conditions remain valid. Waiting for years could mean that financing calculated using earlier prices is no longer sufficient.
“We have a loan where we are already paying back on our loan, but we cannot order generators. The loan cannot afford the generators anymore,” York said.
York presented this as a warning based on the delay and possible price increases. The interview did not include current quotations from generator suppliers or confirmation from GEBE that the financing is now insufficient.
“The money was there”
York recalled the urgency surrounding the financing when Parliament was asked to approve the necessary budgetary measures.
He said parliamentarians were told the country urgently required additional generation capacity and that failing to support the budget would effectively amount to opposing the generators.
“The whole time, for two years, we have been asking the Prime Minister: make a decision. The money is there,” York said.
He argued that government must now explain what happened after the financing was approved, whether a procurement decision was completed and if the original plan remains financially achievable.
The unresolved questions include whether GEBE has selected specific generation units, whether prices have increased, how much of the financing remains available and whether loan repayments have commenced.
York questioned why Sint Maarten continued focusing on large diesel generators when fuel costs have repeatedly been identified as one of the principal pressures affecting electricity prices.
“If the problem is fuel, let us shift to alternative energy,” he said.
Reducing exposure to fuel prices
The MP argued that renewable energy would not immediately eliminate GEBE’s need for conventional generation, but could reduce the company’s fuel consumption and Sint Maarten’s exposure to international oil-price fluctuations.
Fuel dependence has repeatedly placed electricity consumers at risk of higher monthly bills. It has also remained at the center of disputes over GEBE’s fuel-related charges and the company’s cost structure.
York said the government continues discussing greater oversight while failing to make the fundamental transition needed to reduce the fuel problem.
He questioned why the country has remained largely dependent on diesel while neighboring islands have advanced renewable-energy projects.
According to York, Sint Maarten cannot resolve recurring fuel disputes by continuing to invest almost exclusively in fuel-based generation.
He said the government should pivot toward an energy system that reduces the share of electricity generated from imported diesel.
GEBE’s Financial Crisis has three sides
York acknowledged that GEBE’s financial condition cannot be attributed to one cause or one group.
He referred to the effects of the COVID-19 pandemic, the company’s 2022 cyberattack, and customers who failed to pay for electricity they consumed.
However, York said the situation also includes customers who continued making payments but later received large outstanding balances following the company’s billing difficulties and subsequent account calculations.
According to York, the dispute therefore has “three sides”: GEBE, customers who failed to pay, and customers who paid but still accumulated balances.
“You have the GEBE side. You have the side of people who were not paying at all. Then you have the side of people who were paying the whole time, and because of the way the cost structure is structured, what they were paying was not covering their bill,” York said.
He agreed that some customers were negligent and failed to meet their obligations. However, he argued that the conduct of non-paying consumers does not erase questions about GEBE’s tariff and billing structure.
York said the government must avoid treating all customers with outstanding balances as though their circumstances were identical.
The MP also rejected the argument that billing or tariff problems cannot be corrected because doing so would leave GEBE unable to finance its operations.
He said authorities must determine why the company could allegedly overcharge consumers while still experiencing severe financial difficulties.
“If they are overcharging and they are not making the money, who is making the money? Where is the money going?” York asked.
The MP did not identify a person or company as receiving the money. His question was directed at the apparent contradiction between allegations of overcharging and GEBE’s reported financial problems.
Regulations Lagging Behind Private Investment
York also warned that Sint Maarten’s renewable-energy market is already expanding without a comprehensive regulatory framework.
Businesses and homeowners that can afford solar installations and related systems are making the transition independently, while the government has not established clear rules governing the sector.
York said the longer the executive branch delays, the greater the risk that an unregulated market will develop.
Government could then attempt to introduce requirements years later, after residents and businesses have spent substantial money on equipment.
“How are you going to tell people years later that what they did cannot continue? They already invested,” York said.
His concerns include the absence of comprehensive policies governing private renewable generation, interaction with GEBE’s network and the conditions under which customers can reduce their dependence on the utility company.
York said the existing situation leaves the country “paralyzed on both ends”: government is not executing a broad renewable-energy transition, but it is also not establishing the rules needed for private parties to proceed with certainty.
Dutch Funding Requires Policy Framework
According to York, the Netherlands has identified funding to support renewable and alternative energy projects in Sint Maarten, but the country must first establish the required policies and regulations.
He said the necessary preparatory work remains incomplete and that repeated requests for updates have not produced clear evidence of progress.
The MP referred during the interview to different euro amounts when discussing available renewable-energy financing. The exact amount should therefore be confirmed by government before being presented as settled.
Regardless of the final figure, York’s central argument was that Sint Maarten risks leaving financing unused because the executive branch has not completed the regulatory requirements.
“There is money sitting there, but the paperwork needs to be done,” York said.
Executive Branch Must Act
York said comprehensive energy legislation is too extensive to be developed through a single MP’s initiative law.
A transition involving electricity generation, private solar systems, network regulation and energy policy would require participation from multiple ministries and must be directly linked to the government’s national policy.
He therefore placed responsibility on the Council of Ministers and the relevant ministries to prepare and submit the necessary legislation.
“People think Parliament is the only one that makes legislation. The executive branch is a co-legislator as well,” York said.
The MP said government must stop delaying both execution and regulation while fuel dependence continues to affect consumers.
“We are not making any moves ourselves with execution, but we are also not making any regulations,” he said.
York’s statements leave several questions requiring formal answers from government and GEBE: Is the NAF 70 million financing still sufficient for the planned generators? Have repayments started? What procurement decisions have been completed? What renewable-energy funding is available? Which policies must be adopted before those funds are released? And when will the country receive legislation regulating private renewable-energy systems?
Until those questions are answered, Sint Maarten remains dependent on imported diesel, private consumers continue investing without comprehensive rules, and the country’s renewable-energy transition remains more frequently discussed than executed.
