Heyliger-Marten: No GEBE fuel clause refunds without verified financial review

GREAT BAY--Minister of Tourism, Economic Affairs, Transport and Telecommunication (TEATT) Grisha Heyliger-Marten has cautioned that government cannot responsibly authorize refunds or credits to electricity consumers based solely on the fuel clause surplus identified in the April 2025 RAC/BTP tariff evaluation, explaining that a comprehensive examination of GEBE's financial position must first determine whether such payments are justified.

The Minister addressed the issue during Friday's continuation of the 2027 national budget debate, responding to questions from Member of Parliament Sarah Wescot-Williams concerning the implementation of recommendations contained in the regulatory evaluation.

The RAC/BTP report identified a surplus in electricity fuel clause revenues during the period examined, raising questions about whether consumers had paid more through the fuel clause than GEBE incurred in corresponding fuel expenses.

However, Heyliger-Marten emphasized that the report also identified limitations in the available financial information and concluded that additional analysis was necessary to assess GEBE's overall cost recovery.

Fuel Clause Surplus Requires Further Examination

The Minister explained that while the report identified a surplus, the finding cannot be considered independently of GEBE's broader financial position.

A complete cost-coverage analysis must examine the relationship between fuel expenses and fuel clause revenues, as well as operational and capital expenses compared with revenue collected through the base electricity tariff.

This broader examination is necessary to establish whether the utility company's overall tariff structure adequately covers its costs and whether adjustments could be made without creating additional financial difficulties.

According to Heyliger-Marten, the RAC/BTP evaluation itself acknowledged that the financial information required to conduct this analysis was not available during the investigation.

Consequently, government does not yet have a sufficiently verified financial basis to determine whether consumers should receive refunds or credits, or what amount might be involved.

Minister Says Refund Decision Must Be Financially Justified

Addressing the possibility of returning money to consumers, Heyliger-Marten emphasized that any such decision must be supported by complete and reliable financial information.

"Mr. Chairman, not responsibly on the basis of the reported figure alone," the Minister said when responding to whether government could return or credit the surplus identified in the report.

She explained that the figures must first be assessed against GEBE's wider financial obligations and the full structure of electricity tariffs.

The Minister insisted that her position should not be interpreted as rejecting the possibility of consumer refunds.

"I am not dismissing the recommendation. I am saying that any decision involving consumers' money must be supported by a complete and reliable financial assessment," Heyliger-Marten told Parliament.

Her response leaves open the possibility of future refunds or credits, but makes clear that government has not established whether such measures are warranted.

Independent Oversight and Reliable Financial Information

Heyliger-Marten also emphasized the importance of independent regulatory supervision in resolving questions surrounding GEBE's tariff calculations.

The RAC/BTP evaluation noted that the quantitative information used in its assessment had not been audited by an accountant, raising concerns about the reliability of the figures available for regulatory decisions.

The Minister explained that government has since required GEBE to demonstrate compliance with its concession obligations and provide extensive operational, planning and tariff-related information.

BTP's designation as independent supervisor is intended to strengthen the verification of the company's financial information and introduce greater transparency into how electricity and water tariffs are calculated.

The Minister stressed that effective regulation requires the ability to independently establish whether the costs included in customer bills are accurate and justified.

"We cannot effectively regulate a monopoly if the regulator cannot independently verify the financial information used to determine what consumers are required to pay," she said.

Consumer Questions Remain Outstanding

The Minister's explanation comes amid continued parliamentary scrutiny of the RAC/BTP evaluation and its recommendations concerning fuel clause calculations, tariff transparency and consumer protection.

The reported surplus has become one of the issues surrounding whether GEBE's electricity charges accurately reflect the company's underlying costs.

However, the Minister's response indicates that the existence of a surplus in one component of the tariff structure does not, by itself, establish the amount that could lawfully or financially be returned to consumers.

The outstanding financial analysis will therefore be critical in determining whether any adjustment, refund or credit is justified.

For now, no decision has been announced to refund or credit the surplus to electricity customers, and no timetable has been established for completing the financial review needed to reach that determination.

Heyliger-Marten maintained that government must rely on independently verified information before making decisions that could affect both consumers and GEBE's financial sustainability.

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