Energy and Water Corporation Bill Passed
The House of Assembly has approved the Virgin Islands Energy and Water Corporation Bill 2026, merging the BVI Electricity Corporation with water and sewerage services into a single statutory utility. The new entity will manage generation, distribution and supply of electricity, water and sewerage, while the government will subsidise the water arm for up to 15 years or until it becomes financially viable.
The House of Assembly has passed the Virgin Islands Energy and Water Corporation Bill 2026, creating a single statutory utility to oversee electricity, water and sewerage services across the territory. Under the legislation the existing BVI Electricity Corporation is renamed and its mandate expanded.
The new Virgin Islands Energy and Water Corporation will be responsible for generating, transmitting, distributing and selling electricity, as well as supplying and maintaining water and sewerage services. Assets and liabilities tied to the Water and Sewerage Department and the BVI Electricity Corporation will transfer to the new body, and lands, infrastructure, equipment and contracts related to water services will automatically vest in the corporation when the law comes into force.
Although the utility is a single corporate entity, the law requires two distinct business units: one for energy services and another for water and sewerage. Each unit will be led by a director who reports to the corporation’s chief executive officer. Oversight rests with a board appointed by the minister responsible for utilities, subject to Cabinet approval.
The minister retains the power to issue policy directions and review the corporation’s performance. A contested element of the bill gives the corporation the exclusive right to supply electricity and water in the Virgin Islands, although it may grant written permission for other providers in specified circumstances.
The corporation is also authorised to enter private property to inspect meters, repair lines and carry out infrastructure works, subject to statutory safeguards intended to minimise damage and provide compensation where necessary. The law requires the corporation to operate on a commercial basis, with revenues to cover operating costs, debt and 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 is sooner. Tariffs for both electricity and water will continue to be set by Cabinet after consultation with the corporation.
The bill also introduces a regulatory framework for renewable energy, creating Green Energy Licences for independent power producers and a net-billing system to allow consumers to sell excess renewable electricity back to the grid. For residents, the merger promises integrated planning and potential efficiencies but raises questions about long-term subsidies, accountability, property rights and competitive provision of services.
Homeowners and businesses should monitor implementation, future tariff decisions and the roll-out of renewable energy opportunities under the new regime.
Primary source: BVI News