BVIEC promises September credit for high August bills

The BVI Electricity Corporation (BVIEC) will apply a credit to customers’ September electricity bills after record fuel costs resulted in unusually high bills in August.

The corporation said the August bills cover electricity consumed in July, when its fuel cost rose to $3.9609 per gallon — the highest in its recorded history. BVIEC spent approximately $6.07 million on fuel during the month.

BVIEC attributed the increase to continued disruption in global fuel markets and shipping through the Strait of Hormuz, linked to the ongoing conflict between the United States and Iran.

The corporation said it absorbed more than $1 million in fuel costs on behalf of customers. However, the net fuel surcharge still reached a record $0.27606 per kilowatt-hour, surpassing the levels experienced during the 2022 global fuel crisis.

“The increase reflected on August bills is not connected to the recently approved targeted fuel subsidy adjustment for consumption above 1,500 kWh,” BVIEC stated. “The higher bills are the direct result of the exceptional increase in the cost of fuel purchased during July 2026.”

Earlier this month, BVIEC announced that customers would continue to receive the full fuel subsidy on the first 1,500 kWh consumed each month. Customers using more than that amount will pay the unsubsidised fuel cost only on the electricity consumed above the threshold.

The corporation said the targeted adjustment would directly affect 919 of its 17,068 customers. It also projected that its fuel subsidy could exceed $16 million by the end of 2026 at the current rate.

The July fuel-price spike came after the government’s three-month emergency fuel subsidy programme ended in May. The final subsidy under that programme appeared on bills issued in June.

BVIEC said it approached the government about providing further relief after fuel costs rose in July. Following initial discussions, the parties agreed to apply a credit to September bills to help offset the unusually high fuel costs reflected in August.

The corporation has not disclosed the credit amount or how it will calculate the relief.

“Details on how the credit will be calculated and applied will be communicated to customers before September billing,” BVIEC stated.

Communications and Works Minister Kye Rymer will hold a press conference on Tuesday, August 25, at 10 am to address customers’ concerns, provide further clarification and outline the way forward.