Skelton Warns on Electricity Tariff Changes
Opposition legislator Hon. Mark Vanterpool Skelton warned that proposed amendments to the Statutory Rates, Fees and Charges Act could drive up electricity costs for households and small businesses, saying electricity is the "lifeblood of the economy." The remarks were made during the House of Assembly sitting on August 13, 2026, where ministers debated an adjustment targeting consumers using more than 1,500 kilowatt-hours.
Mark Vanterpool Skelton has cautioned that proposed changes to the Statutory Rates, Fees and Charges Act, 2005, risk raising electricity bills for everyday residents and small businesses across the Virgin Islands. Speaking during the Continuation of the Fifth Sitting of the Third Session of the Fifth House of Assembly on August 13, 2026, Skelton responded to comments from Minister for Communication and Works Hon.
Rymer, who said the proposed adjustment would apply to consumers using more than 1,500 kilowatt-hours (kWh). "Based on my experience, it can’t be so because most customers go 2,500 kilowatt-hours, especially small businesses that run refrigerators and so forth," Skelton told the House.
He warned the formula underpinning the amendment would push up bills and, consequently, the price of everyday goods: "If you tell me this will not drive up the cost of food for the very people we’re trying to save — the small people, the small man, who goes to the supermarket every day — I will tell you there is some cause for concern." Skelton emphasised the wider economic importance of reliable and affordable power. "Electricity is the lifeblood of the economy.
If it doesn’t exist, if it goes bad, bad things happen to the economy," he said, pointing to neighbouring territories that face frequent outages. He warned the territory could face generation shortfalls unless the sector’s financial problems are addressed. The opposition lawmaker also noted global pressures on fuel prices — citing wars, instability in the Strait of Hormuz and an international oil crisis — as factors raising generation costs.
He argued these realities underline the need for a coherent tariff philosophy rather than ad hoc adjustments. Skelton called for experts to be commissioned to conduct a comprehensive tariff study tailored to the Virgin Islands, so rates could be designed intentionally and equitably.
He said a well‑structured tariff should allow larger commercial users to effectively cross-subsidise smaller residential and micro-business customers to avoid excessive rate spikes. Describing the amended act as a short-term measure, Skelton warned that without careful planning the territory could face the same risk of generation stoppages seen elsewhere.
His interventions underline growing concern among lawmakers about how to balance utility finances with the cost-of-living pressures facing BVI households and small enterprises. The debate in the House continues as officials weigh immediate fiscal pressures against long-term affordability and energy security for residents.
Primary source: VINO