Electricity bills will always be a challenge for BVIHSA
The BVI Health Services Authority (BVIHSA) continues to grapple with substantial electricity expenses, a situation that has persisted over the years.
Bishop John Cline, a board representative for the BVIHSA, highlighted the issue recently.
“BVI Electricity will always be a challenge for BVIHSA,” Cline said. “Having been here as chairman before, it will always be a challenge.”
He explained that operating a multi-million dollar facility like the Dr D Orlando Smith Hospital results in significant power consumption, leading to high electricity bills.
The cost of electricity in the BVI stands at approximately 40 cents per kilowatt-hour, contributing to the hefty expenses faced by the health authority. Bishop Cline noted that the hospital is not a revenue-generating entity like private sector institutions. “We’re not like the private sector where we are collecting fees for services or even looking to make a profit,” he explained. “We are here to take care of the health of the public.”
Cline explained that financial constraints have made it challenging for the BVIHSA to meet these high costs. The authority relies heavily on government subventions, primarily through the National Health Insurance (NHI) scheme. This dependence places the BVIHSA at a disadvantage when addressing substantial expenses such as electricity bills.
“Someone suffers, and a lot of times it’s the power,” Cline explained while expressing hope that the BVI Electricity Corporation (BVIEC) understands the challenges faced by the health authority.
“[The BVIEC shouldn’t] just chalk it up to ‘we’re not paying the bill’. It’s not that simple,” Cline added.
Premier Dr Natalio Wheatley recently announced plans to write off nearly $20 million owed to the government by the BVIHSA. He indicated that this move aims to improve the authority’s financial standing and ensure better health services for residents.
“About 90% of that debt is owed to the government, primarily through unpaid taxes,” Dr Wheatley explained. He further noted that writing off this debt would provide a much-needed equity infusion, allowing the Health Services Authority to operate more effectively.
Despite these efforts, the BVIHSA continues to face financial challenges. Earlier this year, the authority experienced power cuts to its clinics due to unpaid bills. Communications and Works Minister Kye Rymer defended the BVIEC’s actions, explaining that the BVIHSA is experiencing significant financial challenges due to unpaid bills, resulting in substantial debts to their vendors. He emphasised that he did not personally authorise the power cuts, contrary to suggestions from another lawmaker.
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There’s a solar program being offered by the government. Install as much solar as possible for BVIHSA.
What am I missing?
Didn’t the Government just write of 20M in bills to the BVIHSA ?
So instead of paying the bill the government write off the debt. This puts a hole of 20M in the Electricity company budget to maintain and rebuild the infrastructure. Were never going to see cables under the ground in our hurricane zone island.
This is just unacceptable that they can just write off the bill. We the tax payers will carry the burden of this seeing increased electricity bills. Its the first step to a failing country where they can not meet payments.
Writing off debt, doesn’t mean infusion of equity. In other words, the HSA will not see $20M in its coffers and will continue to perform as miserably as before. If it wasn’t able to generate revenue to pay its dues before it won’t after the debt waiver.
The hospital has many unpaid debts walking the streets. Their finance departments need to crack down on persons leaving the hospital with promise to pay and still don’t pay after years! I know of an unmarried young lady who is pregnant every year and walks out the hospital without paying. Nonsense!