Water and Electricity merger bill passed

The House of Assembly has passed legislation to merge the territory’s electricity and water services under a single statutory utility, creating the Virgin Islands Energy and Water Corporation.

The Virgin Islands Energy and Water Corporation Bill 2026 renames the existing BVI Electricity Corporation and expands its mandate to include water, sewerage and sewage services, effectively bringing the territory’s electricity and water systems under one corporate structure. 

Under the legislation, the renamed corporation will be responsible for generating, transmitting, distributing, and selling electricity, as well as supplying and maintaining water and sewerage services across the Virgin Islands. 

The bill also transfers assets and liabilities tied to the Water and Sewerage Department and the BVI Electricity Corporation to the new entity. Lands, infrastructure, equipment and contracts associated with water services will automatically vest in the corporation once the law comes into force. 

Two business units

Although the utilities are being merged into a single organisation, the law requires the corporation to maintain two separate business units: one responsible for energy services and another for water and sewerage operations. Each unit will be headed by a director who reports to the corporation’s chief executive officer. 

The corporation will be overseen by a board appointed by the minister responsible for utilities, with Cabinet approval. The minister will also have the authority to issue policy directions to the corporation and review its performance. 

One of the bill’s most debated provisions gives the corporation the exclusive right to supply electricity and water in the Virgin Islands, although the corporation may grant written permission for others to provide those services in specific circumstances. 

The corporation will also have authority to enter private property to inspect meters, repair lines and carry out infrastructure works related to water or electricity supply, subject to conditions intended to minimise damage and provide compensation where necessary. 

Gov’t covering water costs

The bill requires the corporation to operate on a commercial basis, with revenues expected to cover operating costs, debt obligations and future expansion. 

However, the government has committed to covering the operating expenses of the water business unit for up to 15 years or until the service becomes financially viable, whichever occurs first. 

Tariffs for electricity and water will continue to be set by Cabinet after consultation with the corporation. 

The legislation also introduces a regulatory framework for renewable energy, including the issuance of Green Energy Licences for independent power producers and the creation of a net-billing system that allows consumers to sell excess renewable electricity back to the grid. 

Debate on the bill has centred on several provisions, including the corporation’s exclusive control over utility supply, the authority to carry out infrastructure works on private property, and the long-term government subsidy required to sustain the water services arm of the merged entity.