Premier Signals Higher Water Rates
Premier Dr Natalio Wheatley warned in the House of Assembly that water rates are likely to rise when the Water and Sewerage Department transfers to the Virgin Islands Energy and Water Corporation (VIEWCO). He said rates must reflect the cost of supply and address unmetered connections, unpaid bills and non-revenue water to make the new utility financially viable.
Premier Dr Natalio Wheatley has signalled that consumers may face higher water charges once the Water and Sewerage Department is transferred into the new Virgin Islands Energy and Water Corporation (VIEWCO). Speaking in the House of Assembly on August 13, Dr Wheatley said the merged statutory body — which will combine the Water and Sewerage Department with the BVI Electricity Corporation — will need to charge rates that reflect the true cost of supplying water so the operation can remain financially viable.
He stressed that the current government subsidy keeps consumer prices far below production costs. "You think an electricity corporation can afford to subsidise water to that extent? So they’re going to have to be able to charge water rates to assist the operation to be viable," Dr Wheatley said.
He added, "You have to be able to charge the rates which are appropriate to make the model work." Opposition member Myron Walwyn asked whether the comments amounted to a back‑door announcement of a tariff increase. Dr Wheatley replied that responsible governance requires the utility to generate sufficient revenue to meet operating expenses and said he was "doubling down" on that position.
He also expressed confidence that VIEWCO's business model will grow the customer base for water and sewage and deliver better results and reliability. Revenue challenges cited by the Premier include unmetered connections, unpaid bills and non-revenue water — losses from leaks, theft or inaccurate measurement.
He said VIEWCO will have to ensure customers pay for the water they receive while expanding service coverage. The legislation creating VIEWCO received Governor Daniel Pruce's assent in June. The government has said the merger aims to strengthen service delivery, improve operational efficiency and support long‑term sustainability for electricity, water and sewerage services.
Dr Wheatley said the minister will soon bring the legislation into force so residents can begin to see the effects of the merger. For BVI residents, the likely implications include a tariff review, possible phased increases, accelerated metering and stronger billing enforcement. Households and businesses should watch for public consultations, notices about meter installation and a formal tariff‑setting process.
Affordability for vulnerable customers and the impact on tourism and operating costs for businesses will be key issues as VIEWCO prepares to implement its business model.
Primary source: BVI News