Prime Minister Dr. Luc Mercelina says the fuel clause charged to electricity consumers is primarily tied to the cost of fuel supplied by SOL to NV GEBE, rather than being set by GEBE itself.
Mercelina said the clause reflects international oil prices and the amount SOL charges GEBE for fuel. He added that GEBE does not have enough storage capacity to independently store all imported fuel, leaving SOL to handle that function.
The Prime Minister acknowledged the pressure high fuel costs place on households and said he has asked SOL to consider contributing to relief efforts, similar to GEBE’s annual support for seniors and vulnerable residents.
Government is also drafting legislation to establish a formal system for regulating electricity tariffs.
Under the proposed framework, the TEATT Minister would regulate tariffs based on advice from BTP.
The draft law still has to pass through the Council of Ministers, Advisory Council and Parliament, while discussions continue with GEBE, SOL and other stakeholders on the fuel clause and overall tariff structure.