The following is the presentation given by the Chairman of the Supervisory Board of GEBE Mr.Julius Lambert, during GEBE’s symposium & celebration of it’s 50th anniversary.
Symposium Speech, Mr. Julius Lambert, Chairman Supervisory Board
1. His Excellency 1st Acting Governor Mr. Groeneveld, Commissioners of Energy Affairs Mr. Mr. William Marlin of SXM, Mr. Johnson of Saba and Mr. Woodley of St. Eustatius, Island Council and Executive Council members present.
2. Members of the Shareholder’s Foundation, Members of the Supervisory Board, Management and Staff of GEBE, Dignitaries, Invited Guests, Ladies and Gentlemen, on behalf of the Board of Supervisory Directors, I greet you and welcome you today to this symposium to celebrate the 50th year anniversary of GEBE together with us. Welcome ladies and gentlemen.
The theme of this symposium is "Our Vision today to power a Brighter Tomorrow". During this symposium different experts chose to enlighten us by sharing their professional views, particularly on the regulatory and operational field of electricity and water utility.
Utility companies such as GEBE over time have developed into the motor that drives the social- and economic development of our nations. Considering this increasingly vital role of these utilities to society, it is understandable that society demands that these companies be required to operate within a regulatory framework with the necessary oversight, particularly when these companies are allowed to operate within a monopolistic environment. Therefore, regulatory structures and oversight entities are put in place to ensure that the utility companies comply with basic conditions and requirements such as quality of service, quantity of service, fair and justified pricing of these services, continuity, etc, etc.
To create the conditions necessary to comply with the requirements, these utility companies must prepare strategic long term plans and programs, which must be implemented in yearly budgets over several years and according to a certain Priority Planning. For example, with the implementation of the many plans and programs in our 1999 – 2010 Business Plan the highest priority was given to those plans and programs that made the biggest positive contribution to the following five Priority Areas:
1. Reduction of cost, with the objective of reducing the utility bills.
2. Improvement of the reliability of the electricity and water services to the public.
3. Improvement of the financial health of the company.
4. Improvement of employees’ morale.
5. Improvement of safety and protection of environment.
Reduction of Cost/Improvement Reliability.
As fuel is the single largest cost to GEBE, GEBE chose to give the highest priority to the reduction of production cost of electricity, so we deliberately chose for expansion of the power plant with production units that met the following requirements:
1. That these units must operate on the cheaper heavy fuel and avoid expensive gasoil.
2. That these production units must be much more fuel efficient.
3. Application of the latest Information Technology in online computerized monitoring of the plant equipment during operation; so that plant operators can take preventive measures before a minor occurrence develop into a major failure. This application avoids unplanned outages and unnecessary expensive repairs and maintenance costs.
With the Business Plan, which was recently developed, the Supervisory Board encourages a further efficiency improvement of the production plant. The usage of cheaper heavy fuel, combined with the more fuel efficient production units and the reduction of maintenance and repair costs, because of computerized monitoring of equipment contributes immensely to the reduction of the cost per kWh of electricity and a reduction in the amount of unplanned outages. This is the bottom line that really matters to the consumers: Namely: Increased service reliability at a fair and justified price per kWh.
Financial Health
GEBE is a capital intensive company, where considerable amounts have to be invested. In 1999 GEBE decided to enter the international financial market in search of financing. After being subjected to intense due diligence GEBE acquired major financing in 1999, in 2004 and again 2007 on its own merits, without a government guarantee and without pledging assets of the company. To ensure continued financing at favorable terms, conditions and costs, it is of paramount importance that GEBE maintains a good financial health, an efficient financial- and operational performance, a good financial risk profile and its good financial rating.
Regulatory Regime/New tariff structure.
The Government has committed itself to replace the outdated tariff structure with new tariffs and rates and to introduce a modern regulatory regime, which our Supervisory Board believes is the right thing to do.A situation, where a utility company with a monopoly is not subject to an adequate regulatory regime and adequate oversight, is highly undesirable. These regulations are necessary to encourage efficiencies, avoid inefficiencies and waste in operations and consequently protect the interest of the consumer.
Protection of Environment/Solar Energy.
One of the cleanest and most sustainable forms of energy that have always existed is solar energy. During periods of the day when the sun is at its maximum the excess electrical energy produced from the sun can be supplied into the electricity grid of GEBE only to reclaim it from the grid at night, when there is no sun. This modus operandi serves as a maximum peak shaver for GEBE at the time when the electricity demand on GEBE by air-conditioning cooling is at its maximum. This reduces the cost for GEBE, the consumer makes 100% use of the available solar energy by storing excess in GEBE’s grid, while in the meantime reducing the carbon foot print, thereby creating a win win situation for both parties and protection of the environment.
In Conclusion: Lower cost to the consumer to generate solar electricity, lower the cost to GEBE by peak shaving by the solar energy supplied by the consumer to the GEBE electricity grid and finally the protection of the environment by reduced carbon foot print.
As a proponent of solar energy, I encourage and support this form of sustainable energy, because of the win win contribution to society.
Ladies and gentlemen, thank you for your attention and
May God bless you.