Reforming the Electricity Sector for Long-Term Stability
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A Sector Shaken by Shocks
Since 2017, Sint Maarten’s electricity sector has faced multiple crises—from hurricanes to operational failures. These shocks exposed deep vulnerabilities.
Reforming the Electricity Sector for Long-Term Stability
Recently, however, the government and GEBE (the public utility) took critical steps to stabilize supply. But stabilization is not enough—long-term reform is now essential.
A Holistic Energy Strategy
The island needs a strategy that ensures electricity supply keeps up with economic and population growth. A successful plan should include:
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- Reforming GEBE’s concession terms to promote efficiency.
- Empowering the Bureau Telecommunicatie & Post (BTP) to act as an independent regulator.
- Updating electricity tariffs to reflect real costs and improve investment signals.
- Gradually transitioning to renewable energy sources like solar.
- Introducing feed-in tariffs to incentivize decentralized solar production.
Reforming the Electricity Sector for Long-Term Stability
Each of these steps would improve reliability, reduce fiscal risk, and open space for competition.
Governance and Oversight Matter
GEBE’s performance has been inconsistent, partly due to governance gaps. Strengthening oversight and corporate governance will ensure better financial and operational outcomes. Transparent management and clear accountability are non-negotiable for public utilities.
At the same time, reforms must balance affordability and cost recovery. Poorly designed price hikes can hurt consumers. However, underpriced electricity discourages investment and leads to service breakdowns. The key is setting prices that reflect costs while protecting vulnerable groups through targeted subsidies.
Reforming the Electricity Sector for Long-Term Stability
Conclusion
Reliable electricity is foundational for economic growth, tourism, and public trust. Sint Maarten has an opportunity to transform its energy sector into a resilient, clean, and sustainable system. That transformation starts now—with reform, regulation, and responsible planning