BVIEC’S MONTHLY FUEL DATA – SEPTEMBER

Tortola, British Virgin Islands, October 23, 2025 — As part of BVIEC’s ongoing transparency initiative launched in September, we continue our monthly look at what it truly takes to power the Virgin Islands. Each month, the BVI Electricity Corporation shares its Fuel Data to give customers a clear and simple view of the real costs behind electricity production — from the fuel we consume to the subsidies that help keep power affordable under fixed government-regulated rates.

Following our first in-depth feature on August’s data, this edition compares September’s results to show how even small shifts in global fuel prices and local operations can affect production costs, efficiency, and the overall fuel subsidy. By presenting this information in straightforward language and relatable examples, BVIEC aims to educate and empower our community with a better understanding of what keeps our homes, schools, and businesses running every day.

  1. Total Fuel Cost Consumed  ($3,318,074)

What it Means:
In September, BVIEC spent just over $3.31 million on fuel — slightly higher than in August. Although we used less fuel, the price per gallon increased, pushing the total cost up.

Why it Matters:
Fuel represents BVIEC’s single largest operational cost. With customer electricity rates fixed by legislation, BVIEC cannot increase what it charges to offset rising expenses. Even small global price shifts can create hundreds of thousands of dollars in additional costs each month.

Relatable Example: Enough to fill two Olympic-size swimming pools with fuel.

  1. Total Fuel Consumed  (1,291,691 US Gallons)

What it Means:
BVIEC used about 10,500 fewer gallons of fuel in September while supplying slightly more electricity.

Why it Matters:
This improvement shows greater fuel efficiency — producing more electricity with less fuel. Efficient use of every gallon helps contain production costs, which is especially important since BVIEC’s rates remain legally fixed.

Relatable Example: Equivalent to 700 fewer cars filling their tanks this month.

  1. Average Fuel Price per US Gallon  ($2.56553) (August: $2.47394)

What it Means:
In September, BVIEC paid an average of $2.57 per gallon of fuel, compared to $2.47 in August — an increase of about 10 cents per gallon. While this may seem small, the impact is significant when multiplied by the thousands of gallons required each day to keep the Territory powered.

Why it Matters:
BVIEC purchases fuel based on global market prices, but electricity rates remain fixed by law. This means the Corporation cannot pass these fluctuations directly to customers, even when prices rise. That 10¢ increase per gallon added to our overall fuel cost affects how much it takes to generate electricity.

Relatable Example: That 10¢ increase in September added nearly $4,300 in extra cost daily.

  1. Total Units Sold  (17,826,265 kWh)

What it means: A kilowatt-hour (kWh) is the basic unit of electricity and is how your bill is measured. In September, electricity sales rose slightly — an additional 35,600 kWh were supplied to our customers.

Why it Matters: BVIEC produced more energy using less fuel — a sign of improved generation efficiency. With fixed rate brackets, BVIEC cannot adjust charges based on increased demand, so operational efficiency is key to managing costs.

Relatable Example: Enough to fully charge approximately 297,000 electric vehicles (a typical EV battery requires about 60 kWh per charge)

  1. Average Cost to Produce & Supply 1 kWh  ($0.22729) {23¢}

What it Means: The average cost to produce and deliver one unit of electricity fell slightly in September, from 22.99¢ to 22.73¢.

Why it Matters: While BVIEC produced electricity more efficiently, the cost of production (≈23¢) still closely matches — and in many cases exceeds — the regulated rates charged to customers:

  • 0–60 kWh → 24¢

  • 61–25,000 kWh → 22.5¢

  • 25,001–100,000 kWh → 19¢

  • Over 100,000 kWh → 16.75¢

This means that larger customers — who pay 16.75¢ per unit — are paying less than it costs BVIEC to produce and supply their electricity.

Relatable Example: For every 1,000 kWh used by a large business, BVIEC spends about $230 to produce it, but by law, it can only recover $167.50, a figure that is further reduced by the mandatory fuel subsidy.

  1. Fuel Surcharge Subsidy in September ($1,079,896.28)

What it means: The fuel subsidy is financial support required by law that lowers the fuel surcharge customers would otherwise pay. In September, our fuel subsidy totalled just over $1.07 million, down about $91,000 from August.

Why it Matters:
The subsidy continues to shield customers from the full impact of rising production costs. However, the Corporation must still absorb part of the gap between actual costs and what customers pay.

Relatable Example: Every dollar of subsidy = direct relief for customers, but also a missed investment in maintenance and other critical operational components.

  1. Cumulative Fuel Surcharge Subsidy YTD  ($10,168,242.81)

What it Means: Since January, BVIEC has applied over $10.1 million in mandatory subsidies to offset fuel costs for customers under the fixed rate structure.

Why it Matters: The subsidy represents millions saved by customers, but also highlights the financial gap BVIEC must absorb to keep power affordable. This cumulative amount reflects BVIEC’s ongoing effort to keep electricity affordable for households and businesses. However, these funds also represent resources that could have supported vital engine maintenance and infrastructure upgrades at the generation plant — essential for reliability and sustainability.

Relatable Example: Equal to more than two months of free electricity for every customer in the BVI.