PHILIPSBRG--Unified Resilient St Maarten Movement (URSM) Member of Parliament (MP) Christopher Wever has proposed temporarily freezing GEBE's fuel clause at 30 cents until a full investigation into the matter is completed.
He said on Wednesday that the measure could help ease the financial burden on consumers during the current economic crisis. During the debate on the draft 2027 budget, Wever recalled that government had previously agreed with GEBE to freeze the fuel clause at 18 cents during the COVID-19 pandemic, when the economic situation was uncertain.
He said the arrangement had been intended to prevent additional financial pressure on residents and questioned whether a similar measure could be introduced under the current circumstances.
Wever acknowledged that GEBE operates on a profit basis but asked whether the company could still generate a surplus if the fuel clause were reduced.
Using an example, he questioned whether GEBE could still make a profit of Cg.1.5 million instead of Cg.2 million under a reduced fuel clause.
He called for government to examine how far the fuel clause could be lowered while still allowing the utility company to remain profitable.
