Premier: Businesses Will Pass Power Hike
Premier Dr Natalio Wheatley acknowledged that businesses affected by the recent electricity tariff increase are likely to pass higher costs on to consumers. The House approved tariff amendments affecting customers who use more than 1,500 kilowatt-hours per month; 919 of BVIEC's 17,068 customers will be directly affected.
Premier Dr Natalio Wheatley has conceded that businesses hit by the latest electricity tariff rise are likely to pass the increased costs on to consumers, a development that could push up prices for goods and services across the British Virgin Islands. Dr Wheatley made the admission during a House of Assembly debate on amendments to electricity tariffs and charges that target customers consuming more than 1,500 kilowatt-hours (kWh) a month.
The resolution was subsequently approved by the House. Explaining the move, the Premier said customers in several large-consumption bands previously paid between 16 and 22 cents per kWh: 22 cents for usage between 61 and 25,000 kWh, 19 cents for 25,000 to 100,000 kWh, and 16 cents for over 100,000 kWh.
He told lawmakers that the BVI Electricity Corporation (BVIEC) now spends roughly 22 to 23 cents to generate each kilowatt-hour, meaning the utility loses money when some customers are charged less than production costs. "So going up to the 24 cents is necessary for them to produce it at a net gain," Dr Wheatley said, adding that he could not discount the likelihood that businesses would pass the increased expense to consumers.
He also acknowledged opposition warnings that the tariff change could raise food and commodity prices. The adjustment will directly affect 919 of BVIEC's 17,068 customers; the remainder fall below the 1,500-kWh threshold. The tariff change follows a temporary government subsidy earlier this year, when the administration provided BVIEC with $1 million per month for three months to help offset rising global fuel prices.
Authorities had warned that, without intervention, bills could have risen by as much as 50 percent. To reduce pressure on consumers and businesses over the long term, Dr Wheatley urged commercial customers to invest in renewable energy. He pointed to the rooftop solar system installed by RiteWay Food Markets as an example and encouraged businesses to use BVIEC's grid-tie arrangements to lower dependence on diesel-generated power.
For residents and small businesses, the tariff change underscores the value of energy-efficiency measures and opportunities in solar. While the government and BVIEC say the adjustment is needed for the utility's financial sustainability, many consumers can expect to see higher prices on goods and services that rely heavily on commercial electricity usage.
Primary source: BVI News