BTP logo
PHILIPSBURG--Bureau Telecommunications and Post (BTP) is preparing a new fuel clause tariff structure for GEBE after the utilities company failed to submit a proposal addressing deficiencies identified in the evaluation by the Regulatory Authority of Curaçao RAC and BTP, Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Grisha Heyliger-Marten told Parliament during the debate on the draft 2027 budget.
The draft structure is expected to be delivered to government within the coming weeks, as part of wider efforts to address recommendations in the April 2025 RAC/BTP evaluation of GEBE’s electricity and water tariffs.
Responding to questions from a Member of Parliament (MP) about the implementation of the report’s recommendations, Heyliger-Marten said the evaluation covered several interconnected issues, including independent regulatory oversight, fuel procurement, the electricity fuel clause methodology, electricity cost associated with water production, non-revenue electricity, the base tariff structure, transparency, financial reporting and potable water tariffs.
She said some recommendations have moved into implementation, while others require further technical verification, regulatory decisions or action by other ministers.
The minister said government has already moved to activate the supervisory mechanism under the Electricity Concession Ordinance and designate BTP as Supervisor.
This is intended to establish independent oversight of GEBE, monitoring of its concession and reviews of tariffs. The RAC/BTP evaluation identified the absence of effective independent regulation of electricity and water tariffs and named BTP as the preferred existing institution to perform that role.
Regarding the fuel clause, the report found that the existing formula could not be validated in its current form. Among the deficiencies identified were a timing mismatch in the calculation, the allocation of fuel cost associated with potable water production and the use of a fixed percentage for non-revenue electricity instead of a dynamic calculation.
Government subsequently required GEBE to submit a proposed tariff structure addressing the fuel clause methodology, non-revenue electricity and GEBE’s own consumption, the allocation of fuel cost associated with Seven Seas, and a correction mechanism for the N-1/N calculation.
Heyliger-Marten said GEBE failed to submit the requested proposal, prompting BTP to prepare the fuel clause tariff structure itself. She said the formula must be corrected through a verified and legally established methodology, rather than government arbitrarily changing individual figures.
The minister said electricity cost associated with potable water production must be addressed alongside the potable water tariff structure.
The RAC/BTP report identified concerns about how electricity expenses related to water production were allocated and recommended a correction mechanism. However, it also identified significant deficiencies in the existing potable water tariff structure and recommended a comprehensive revision supported by an impact analysis.
Heyliger-Marten said correcting one component without examining the other could have unintended consequences for consumers’ bills. She added that the matter must also be considered as the Ministries of Public Health, Social Development and Labor VSA and Public Housing, Spatial Planning, Environment and Infrastructure VROMI negotiate a possible extension of the potable water production agreement with Seven Seas.
On the question of returning or crediting consumers for a fuel clause surplus identified in the report, the minister said government could not responsibly make a decision based on the reported figure alone.
She explained that the report identified a surplus for the period examined but also stated that determining GEBE’s overall financial position required a broader cost-coverage analysis. This would have to compare fuel expenses with fuel clause revenues, as well as operational and capital expenses with revenues generated through the base tariff.
The report also acknowledged that the information needed to complete that analysis was not available during the evaluation.
Heyliger-Marten said the relevant financial information must therefore be verified before government can determine whether any amount should be returned or credited to consumers.
The minister said greater tariff transparency is one of the objectives of the regulatory framework being established. The report found that tariff calculations lacked independent oversight and that consumers had difficulty obtaining a clear overview of applicable electricity and water tariffs.
With BTP designated as Supervisor, government is working to establish independent verification and greater transparency. Heyliger-Marten said consumers should be able to understand how the amounts on their utility bills are calculated and have confidence that the charges are justified.
She also said better financial information from GEBE is essential for effective regulation. The evaluation noted that the quantitative information used in its assessment had not been audited by an accountant and stressed the importance of audited financial information to ensure the reliability of tariff calculations.
The minister said government has since required GEBE to demonstrate compliance with its concession obligations and provide extensive operational, planning and tariff-related information.
On fuel procurement, Heyliger-Marten said the report found that GEBE’s light fuel oil (LFO) and heavy fuel oil (HFO) procurement prices broadly followed international market movements.
However, it also identified additional components in the fuel pricing structure, including premium surcharges, insurance, freight, procurement, inspection, loss allowances, remittance tax, Port throughput fees and marketing differentials.
The report recommended stronger government involvement in fuel pricing and the development of a fuel optimisation plan. Heyliger-Marten said government must examine the entire fuel supply chain, including how fuel is procured, transported, stored and supplied to GEBE.
She said this includes exploring opportunities for GEBE to establish its own fuel storage and pipeline infrastructure, which could create greater independence and opportunities for competitive procurement.
The minister also pointed to the need to accelerate the transition towards renewable energy, including solar generation, to gradually reduce dependence on imported fossil fuels.
Regarding the legal framework for electricity tariffs, the minister said the report noted that Article 12, paragraph 4, of the Electricity Concession Ordinance requires tariffs to be established by National Decree Containing General Measures, based on cost orientation, with provisions allowing deviations for social considerations. However, the evaluation found that tariffs were not being determined in accordance with that prescribed mechanism.
Government is therefore working towards a lawful, transparent and independently supervised tariff framework covering the fuel clause, the base tariff structure and provisions for vulnerable consumer categories, including Tariff 60.
Heyliger-Marten said BTP is expected to deliver a draft National Decree Containing General Measures establishing the fuel clause tariff structure within the coming weeks. This will be followed by a draft National Decree establishing the base tariff structure, including the categorisation of different types of utility connections.
