PHILIPSBURG--St. Maarten Timeshare Association (SMTA) said "good transparency," as suggested by Commissioner Theo Heyliger, would be a "nice beginning" in obtaining clarity from utility company GEBE about the possibility of a special electricity tariff for all timeshare, hotel, and guest house properties catering to tourists.
Heyliger said on Monday that a tariff structure was already in place for "large consumers," and he would not support a tariff reduction for hospitality businesses, because this would mean a tariff increase for households. He suggested that hospitality businesses use other measures to combat electricity cost.
Heyliger added that he had also asked GEBE Managing Director William Brooks to meet with the association and give them an overall look at the company, and explain its tariff structure, because this was in keeping with "good transparency."
SMTA Chairwoman Joan May said she welcomed the Commissioner's suggestion that SMTA meet with Brooks, "a request we have had for more than a year," she said. "Good transparency, as the Commissioner put it, will be a nice beginning. One question is: why do some hotels have lower electricity and/or water rates than others, as we have been informed? A small guest house has as many challenges in remaining open as some large hotels, which are benefitting.
"Another question we have is: why has the fuel clause increased by 300 per cent from the beginning of 2009 to the end of the year, while the price of heavy fuel has risen by only 65 per cent?" she asked.
She said the current "standard" discount for large consumers was different than what SMTA had in mind for hotels, guest houses, and timeshare properties. "We are not looking for across-the-board reductions for commercial customers, which would indeed mean an increase for the home consumer, but only for hotel-licensed properties, which deserve the support of Government as a primary source of foreign revenues."
SMTA has brought a leading energy consultant recommended by Caribbean Hotel Association to the Island twice, and has had energy audits done at the properties.
"We have enacted many conservation measures over the last several years, and are still struggling with the fees. The SMTA looks forward to having this dialog opened as soon as possible," May added.
In the meantime, GEBE management informed The Daily Herald on Tuesday that a meeting had already been scheduled with Brooks for next week with St. Maarten Hospitality and Trade Association, of which SMTA is a member.
Commercial Manager Steve Duzanson added that the company had given a presentation to SHTA during its Manager's Retreat at Port de Plaisance, in October 2009, during which all relevant topics had been discussed.
"For both electricity and water, there are volume-based rates; hotel properties whose usage puts them in a certain bracket receive the corresponding rate. It is comparable to the wholesale/retail price concept used in many industries, including the hospitality industry," he explained.
He added that the difference in the fuel clause, compared to the oil price increase, was skewed, due to the fuel clause relief that was given in the beginning of 2009. The price of oil doubled from January 2009 to March 2010, and the real fuel clause also doubled.
