Brace For Higher Prices As BVIEC Rate Hike Targets Big Businesses

Residents are being told to brace for increased prices after the House of Assembly approved a Motion, paving the way for BVI Electricity Corporation (BVIEC) to raise rates for its largest consumers.

Premier and Minister of Finance Dr Natalio Wheatley introduced the Motion to amend the Statutory Rates, Fees and Charges Act, 2005, as the Government moved to provide a financial lifeline for the corporation.

The debate on the Motion started this afternoon, August 13 and continued into this evening and concluded with the Motion being passed.

Minister for Communications and Works Hon. Kye Rymer said that 95 per cent of BVIEC customers would see no change to their electricity bills since the increase will apply to consumers who utilize above 1,500 kilowatt units.

Premier Wheatley said 919 of the corporation’s 17,680 customers would be affected.

“This is not a blanket rate increase, and it is not about punishing anyone. This is about restoring balance to a system that has been off balance for far too long,” Rymer said.

Acknowledging the financial pressure already facing families and businesses, Rymer said the Government could not continue delaying action.

“I am not here to defend a rate increase for its own sake. I am here to defend sustainability. I am here to defend energy independence. I am here to defend our collective future,” he stated.

The Minister said the increase is critical to BVIEC’s survival, arguing that its decades-old rate structure was no longer sustainable.

“Every month we delay, BVIEC sinks deeper into a hole that will eventually require a much larger intervention, and that burden will fall on every single taxpayer,” Rymer warned.

Everyone Will Feel It

However, Opposition members dismissed the Government’s claim that most consumers would escape the impact, arguing that major businesses would transfer the increased electricity costs to customers.

Second District Representative Hon. Melvin Turnbull said residents would pay more indirectly through higher prices for goods and services.

“The people will feel this directly and indirectly. You cannot tell me you are helping me when you are hurting me,” Turnbull stressed.

Opposition Leader Hon. Marlon Penn described the measure as “a Band-Aid on a gaping wound”.

“That is the Bobby’s of the BVI, that is the Frozen Imports of the BVI, that is the OneMart of the BVI, Super Value of the BVI,” Penn said, referring to businesses expected to be affected.

“That same transfer of monies is going to be passed on to every consumer in the Territory,” he warned.

Penn and Turnbull called for a comprehensive, long-term strategy instead of what they described as a piecemeal approach to major economic challenges.

Ninth District Representative and Minister for Health and Social Development Hon. Vincent Wheatley and At-Large Representative Hon. Stacey Mather argued that the Government had no choice but to provide BVIEC with a lifeline, noting that its rates had not been changed since 1978.