~ Theo says he won't support it ~
PHILIPSBURG--The St. Maarten Timeshare Association (SMTA) is lobbying for a "special electricity tariff" for timeshare, hotel, and guesthouse properties that cater to tourism.
However, Energy Affairs Commissioner Theo Heyliger said a tariff structure is already in place for "large consumers," and he will not support a tariff reduction for hospitality businesses because this would mean a tariff increase for households. He suggested that the hospitality businesses use other measures to combat electricity costs.
In an invited comment, the commissioner said he has also asked GEBE's Managing Director William Brooks to meet with the association, give them an overall look at the company and explain its tariff structure, because this was in keeping with "good transparency." He also said that government has to be careful when "meddling in the affairs" of the company.
On Sunday, SMTA Chairwoman Joan May said that the association was disappointed in government's inaction over this issue.
"For well over a year now, we have sent numerous letters to the Executive Council, both of the Democratic Party (DP) and the NA/Heyliger coalition, GEBE's Managing Director Brooks, GEBE's Board of Supervisors and the shareholding board. Not one of these groups has had the courtesy to even reply, let alone address our issues," May said.
May said SMTA had requested an investigation into the feasibility for a special electricity tariff for all timeshare, hotel, and guesthouse properties catering to tourism.
"This, in fact, exists on other islands. Electricity rates have been identified as a major threat to the entire lodging industry's continued health. In April of last year, the SMTA enlisted the St. Maarten Hospitality and Trade Association (SHTA) to make a common cause on the issue, and joint letters were added to the SMTA's requests," May said.
"The lodging industry, our island's largest employer and generator of foreign exchange, faces stiff competition with other Caribbean destinations and has been slammed by a double whammy. Firstly, in the spring and summer of 2008 when fuel prices spiked, the industry experienced shattering properties' budgets, and again with the global economic downturn," she said.
"All properties share this burden, which has had the effect of raising costs beyond that of other destinations. This has threatened our ability to operate on sustainable margins and has severely limited our ability to increase wages for the hospitality workers to help them cope with rising cost as well," May noted.
She said even unions have recognised this need and have expressed to the association that it is right in making this request.
Other Caribbean destinations, recognising the key aspect of a healthy lodging industry to the continued economic health of the islands, have provided special provisions including reduced electricity tariffs and duty-free status for properties, she said. "The fact that no response of any sort has been made by two governments and GEBE's leadership on this issue affecting our core economy is a huge disappointment."
Heyliger said a tariff structure is already in place for large consumers including the hotels and timeshare businesses. "They want a rate reduction, but a rate reduction for them would mean a rate increase for households and I won't support rate increase for household customers," he said.
"Household consumers don't have any way of charging customers. It's not possible, but it would be appropriate that GEBE sits with them and the SHTA. They have to understand that the world prices of fuel are not controlled by St. Maarten. It is also important that the necessary investments continue to be made for GEBE."
He said "a lot more" of GEBE's generators are in need of repairs. The commissioner said many hotel properties in the region have implemented creative measures to combat electricity cost. He alluded to hotels in St. Lucia, for example, which use smaller air conditioning units and whose air conditioning units automatically shut off the minute a guest leaves the room and removes the key. He said some hotels in the region also have an energy surcharge. "They have to look at cost reduction measures; they just can't ask government to reduce rates," Heyliger contended.
