As GEBE fuel clause rises, other islands move to cushion consumers

GREAT BAY--NV GEBE has announced that the fuel clause for May 2026 has been adjusted to NAf. 0.45 per kWh, up from NAf. 0.36 per kWh in April 2026.

The company said ongoing geopolitical tensions and conflicts in the Middle East have contributed to unpredictable fluctuations in global fuel prices, directly affecting the cost of fuel required to generate electricity in St. Maarten. GEBE stated that, as an island that depends heavily on imported fuel for power production, changes in global oil prices can significantly affect operational costs.

According to GEBE, the fuel clause is adjusted monthly to reflect the actual cost of fuel used to generate electricity. The May adjustment represents an increase of NAf. 0.09 per kWh compared to April.

The increase comes as several other Caribbean jurisdictions have announced or implemented measures to reduce the impact of rising fuel and electricity costs on consumers.

In the Cayman Islands, government announced a fuel cost charge cap of CI$0.18 per kWh for qualifying residential electricity customers as part of a wider plan to lower energy costs. The measure was designed to support residential customers using between 101 kWh and 2,000 kWh per month.

In Anguilla, government introduced a fuel relief package that included a temporary cap on the electricity fuel surcharge. The cap was set at EC$0.42 per kWh for households and most customers, and EC$0.65 per kWh for the accommodation sector.

In Barbados, government announced that it would absorb 50 percent of any increase in the fuel clause adjustment on electricity bills above the March 2026 level for a three-month period. Barbados also extended caps on the VAT collected on gasoline and diesel.

In Bermuda, BELCO announced a slight decrease in its Fuel Adjustment Rate for the April to June 2026 period, citing its fuel procurement strategy and the removal of government tax on fuel in the 2026/2027 Budget.

In Aruba, government reportedly moved to absorb half of the increase in gasoline and diesel prices, with the measure estimated at approximately 2.5 million florins per month.

In St. Maarten, GEBE’s May 2026 announcement refers to senior and community relief initiatives and encourages customers to reduce electricity consumption. The notice does not announce a new fuel clause cap, government subsidy, temporary absorption measure, tax waiver or other broad consumer relief mechanism tied to the May increase.

GEBE said it recognizes that adjustments in electricity-related costs affect both the community and the company’s operations. The company said it remains committed to supporting the community through senior and community relief initiatives, while maintaining transparency and reliable energy service.

The company encouraged customers to take steps to reduce electricity consumption and manage monthly utility bills. Suggested measures include turning off lights and appliances when not in use, using energy-efficient LED lighting, setting air conditioning units between 24°C and 26°C, unplugging electronics and chargers when not in use, limiting the use of high-energy appliances during peak hours, and properly maintaining refrigerators and air conditioning units.

GEBE said it will continue to monitor global fuel developments and remains committed to providing safe and reliable electricity services to the people of St. Maarten.

A related issue remains the status of GEBE’s tariff structure. In February 2026, Minister of Tourism, Economic Affairs, Transport and Telecommunication Grisha Heyliger-Marten instructed NV GEBE to demonstrate compliance with its Electricity Concession and submit a complete proposed tariff structure within 30 days. At the time, the Minister stated that any new tariff structure must be transparent, non-discriminatory, and include suitable social protections, particularly for seniors.

The Minister at the times stated that inefficiencies should not be passed on to consumers. However, with the May fuel clause now increasing to NAf. 0.45 per kWh, no public update has been issued on whether GEBE submitted the requested tariff structure, whether it has been reviewed, or whether it includes any measures to protect consumers from fuel-related increases.

St. Maarten also still does not have a renewable energy transition plan.