BVIEC Five Years Behind On Audits As
The BVI Electricity Corporation's latest completed audited financial statements date back to 2021, leaving the statutory body roughly five years behind on its formal reporting. General Manager Dr. Neil Smith acknowledged the backlog, citing system upgrades and auditor delays, while defending the corporation's financial integrity and recent rate adjustments.
The BVI Electricity Corporation (BVIEC) has not completed an audited financial statement since 2021, leaving the publicly owned utility roughly five years behind on its formal financial reporting. Neil Smith disclosed the multi-year backlog during a government press conference earlier this week, while defending the corporation's overall management and recent rate adjustments.
Smith attributed the reporting delay partly to the installation of a new enterprise management system designed to link work processes, employee hours, purchasing, and broader financial operations. He explained that the corporation needed to ensure the new platform contained all necessary data before completing formal financial statements.
Smith also placed shared responsibility on external auditing firms hired to examine the accounts, noting that auditing firms have not processed reviews as swiftly as expected. Addressing whether the delay was embarrassing for the territory's sole power provider, Dr. Smith said he recognized the seriousness of the issue and noted that he personally initiated efforts over the past year to resolve the backlog properly.
Transparency questions have intensified following BVIEC's claim that it absorbed $49.8 million in fuel costs on behalf of consumers since 2023. When asked how the public could independently verify such figures without current audited statements, Dr. Smith agreed that completed audits serve as the primary tool for independent public verification.
However, he maintained that internal accounts are prepared by professional accountants adhering to strict industry standards, adding that past audits have not shown material discrepancies between reported internal numbers and auditor findings. The audit disclosure comes as the government prepares to implement changes affecting larger electricity consumers.
Minister for Communications and Works Kye Rymer confirmed that a recently approved amendment under the Statutory Rates, Fees and Charges Act, targeting users consuming more than 1,500 kilowatt-hours, will soon be gazetted. Government lawmakers have defended the measure as a necessary adjustment to base rates that have remained unchanged for more than 25 years, while opposition members raised concerns that businesses will pass added costs to consumers.
Smith noted that operating under decades-old base rates left the utility vulnerable to inflation, rising operational costs, and higher equipment expenses, causing the corporation at times to operate at a loss. He reiterated that previous rate structures resulted in smaller consumers effectively subsidizing larger commercial users who consumed power below production cost.
Smith also rejected assertions that BVIEC receives unchecked government subsidies, clarifying that any public financial assistance requires a rigorous Cabinet approval process. He emphasized that fuel cost adjustments are direct pass-through charges that generate no profit for the corporation, encouraging high-volume consumers to invest in renewable energy systems to reduce fuel exposure.
Primary source: BVI Platinum