The BVI Electricity Corporation (BVIEC) absorbed approximately $49.8 million in fuel costs between 2023 and July 2026 to protect consumers from the full impact of rising electricity-generation expenses.
The Corporation said it absorbed $13 million in 2023, $13.4 million in 2024 and $13.7 million in 2025. Another $9.7 million was absorbed during the first seven months of 2026, with the subsidy for this year projected to exceed $16 million if the current pace continues.
Fuel represents a significant component of electricity-generation costs in the Virgin Islands because the Territory remains heavily dependent on imported fossil fuels.
Instead of passing the full cost on to customers, BVIEC noted that it has been carrying a substantial portion of that expense through its fuel subsidy.
However, BVIEC said the continued absorption of fuel costs at that level is placing an increasing financial burden on the Corporation and reducing the funding available to maintain and strengthen the electricity system.
The nearly $50 million absorbed could otherwise have supported the maintenance and overhaul of generating equipment, replacement of ageing infrastructure, improvements to system reliability and investment in renewable-energy projects aimed at reducing the Territory’s long-term dependence on imported fuel.
Against this background, a targeted adjustment has been approved for customers consuming more than 1,500 kilowatt-hours (kWh) per month.
Customers will continue to receive the full fuel subsidy on their first 1,500 kWh of monthly consumption. Only electricity consumed above that threshold will be billed using the applicable unsubsidised fuel cost.
Customers consuming 1,500 kWh or less will therefore experience no change to their bills as a result of the measure.
Those exceeding the threshold will continue to benefit from the subsidy on the first 1,500 kWh, but will pay the unsubsidised fuel cost on the additional units.
BVIEC stressed that the adjustment does not represent an increase in its electricity rate. It is a reduction in the subsidy applied to higher levels of consumption, intended to preserve support for normal and essential use while helping the Corporation meet the cost of maintaining a reliable electricity system.
The Corporation said it absorbed $13 million in 2023, $13.4 million in 2024 and $13.7 million in 2025. Another $9.7 million was absorbed during the first seven months of 2026, with the subsidy for this year projected to exceed $16 million if the current pace continues.
Fuel represents a significant component of electricity-generation costs in the Virgin Islands because the Territory remains heavily dependent on imported fossil fuels.
Instead of passing the full cost on to customers, BVIEC noted that it has been carrying a substantial portion of that expense through its fuel subsidy.
However, BVIEC said the continued absorption of fuel costs at that level is placing an increasing financial burden on the Corporation and reducing the funding available to maintain and strengthen the electricity system.
The nearly $50 million absorbed could otherwise have supported the maintenance and overhaul of generating equipment, replacement of ageing infrastructure, improvements to system reliability and investment in renewable-energy projects aimed at reducing the Territory’s long-term dependence on imported fuel.
Against this background, a targeted adjustment has been approved for customers consuming more than 1,500 kilowatt-hours (kWh) per month.
Customers will continue to receive the full fuel subsidy on their first 1,500 kWh of monthly consumption. Only electricity consumed above that threshold will be billed using the applicable unsubsidised fuel cost.
Customers consuming 1,500 kWh or less will therefore experience no change to their bills as a result of the measure.
Those exceeding the threshold will continue to benefit from the subsidy on the first 1,500 kWh, but will pay the unsubsidised fuel cost on the additional units.
BVIEC stressed that the adjustment does not represent an increase in its electricity rate. It is a reduction in the subsidy applied to higher levels of consumption, intended to preserve support for normal and essential use while helping the Corporation meet the cost of maintaining a reliable electricity system.
© 2026 BVI Platinum News. This article is original BVI Platinum content. Reproduction or republication without written permission is prohibited.
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