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Opposition Member Ronnie Skelton has warned that the BVI risks electricity problems worse than those facing the neighbouring US Virgin Islands if rising fuel costs leave the BVI Electricity Corporation (BVIEC) unable to maintain its equipment.
Speaking on the National Democratic Party radio programme, Skelton, who served as BVIEC’s general manager during the 1990s, said the Corporation could not continually absorb higher fuel costs without putting its operations at risk.
“I don’t think, based on my knowledge, electricity could carry the burden. I don’t think they can,” he said.
Skelton said he believed BVIEC was operating with limited financial margins and warned that sustained pressure could undermine maintenance.
“I think they running at margin revenue now, and eventually, if that continues, you will have no maintenance... And then you will have a greater electrical problem that we have in the U.S.V.I today,” he stated.
He pointed to the BVI’s dependence on imports and said the war in Iran had driven fuel prices up substantially. He warned that the Government’s ability to cushion those increases would also come under pressure if the conflict continued.
“If the Government doesn’t have a huge pocket, and this war goes for a long time, then we have a problem, a major problem,” Skelton said.
His comments come amid concern over high electricity bills. BVIEC reported that August bills reflected record fuel costs in July, even after the Corporation absorbed more than $1 million in fuel expenses on behalf of customers.
The Government previously provided $3 million in subsidies for March, April and May, then announced a credit for August charges and a subsidy for September bills. Cabinet has since approved another $2.5 million to support electricity subsidies through the end of 2026.
Skelton questioned how BVIEC could absorb the difference when fuel prices rose significantly beyond the amount covered by its tariff, illustrating his point with a rise from 66 cents to $2 per gallon.
He said the Government and BVIEC needed to work together on a lasting solution, cautioning that whoever formed the Government would have to confront the same challenges.
“They’re not simple problems to solve,” he said. “It’s a complex problem that needs a long-term solution.”
Skelton expressed confidence that collective effort could produce answers, but warned against allowing the utility’s difficulties to deepen.
“Once utilities go into difficulties, it takes 12, 18 months to go again,” he said.
Speaking on the National Democratic Party radio programme, Skelton, who served as BVIEC’s general manager during the 1990s, said the Corporation could not continually absorb higher fuel costs without putting its operations at risk.
“I don’t think, based on my knowledge, electricity could carry the burden. I don’t think they can,” he said.
Skelton said he believed BVIEC was operating with limited financial margins and warned that sustained pressure could undermine maintenance.
“I think they running at margin revenue now, and eventually, if that continues, you will have no maintenance... And then you will have a greater electrical problem that we have in the U.S.V.I today,” he stated.
He pointed to the BVI’s dependence on imports and said the war in Iran had driven fuel prices up substantially. He warned that the Government’s ability to cushion those increases would also come under pressure if the conflict continued.
“If the Government doesn’t have a huge pocket, and this war goes for a long time, then we have a problem, a major problem,” Skelton said.
His comments come amid concern over high electricity bills. BVIEC reported that August bills reflected record fuel costs in July, even after the Corporation absorbed more than $1 million in fuel expenses on behalf of customers.
The Government previously provided $3 million in subsidies for March, April and May, then announced a credit for August charges and a subsidy for September bills. Cabinet has since approved another $2.5 million to support electricity subsidies through the end of 2026.
Skelton questioned how BVIEC could absorb the difference when fuel prices rose significantly beyond the amount covered by its tariff, illustrating his point with a rise from 66 cents to $2 per gallon.
He said the Government and BVIEC needed to work together on a lasting solution, cautioning that whoever formed the Government would have to confront the same challenges.
“They’re not simple problems to solve,” he said. “It’s a complex problem that needs a long-term solution.”
Skelton expressed confidence that collective effort could produce answers, but warned against allowing the utility’s difficulties to deepen.
“Once utilities go into difficulties, it takes 12, 18 months to go again,” he said.
© 2026 BVI Platinum News. This article is original BVI Platinum content. Reproduction or republication without written permission is prohibited.
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