PRESS STATEMENT: TARGETED FUEL SUBSIDY ADJUSTMENT FOR ELECTRICITY CONSUMPTION ABOVE 1,500 KWH

Tortola, British Virgin Islands, August 18, 2026 — The BVI Electricity Corporation (BVIEC) wishes to provide customers with clear information regarding the recently approved adjustment to the fuel subsidy applied to electricity consumption above 1,500 kilowatt-hours (kWh) per month.

Most importantly, electricity rates are not increasing.

The existing rate charged per unit of electricity remains unchanged. The adjustment relates only to the level of fuel subsidy applied to higher monthly electricity consumption.

Under the approved measure, customers will continue to receive the full fuel subsidy on the first 1,500 kWh used each month. Only the portion of monthly consumption above 1,500 kWh will be billed using the applicable unsubsidised fuel cost.

This means that customers who consume 1,500 kWh or less in a month will not experience any change to their bills as a result of this measure.

For customers whose monthly consumption exceeds 1,500 kWh, the subsidy will still fully apply to the first 1,500 kWh. The adjustment will affect only the additional units consumed beyond that threshold.

BVIEC recognises that electricity is an essential service and that customers depend on reliable power for their homes, businesses and daily lives. It is therefore important that customers understand not only how this adjustment will work, but why it has become necessary.

Why This Step Is Necessary

The targeted approach is intended to preserve subsidy protection for normal and essential electricity consumption while addressing the increasing financial burden associated with subsidising higher levels of electricity use without limit.

Between 2023 and July 2026, BVIEC absorbed approximately $49.8 million in fuel costs on behalf of customers. This included approximately $13.0 million in 2023, $13.4 million in 2024, $13.7 million in 2025 and $9.7 million during the first seven months of 2026. At the current pace, the fuel subsidy for 2026 is projected to exceed $16 million.

These are funds that would otherwise be available to support the electricity system itself, including the maintenance and overhaul of generating equipment, replacement and strengthening of ageing infrastructure, system reliability initiatives and investment in renewable energy and other projects aimed at reducing the Territory’s long-term dependence on imported fossil fuels.

The adjustment therefore seeks to strike an important balance: continuing to protect customers from the full cost of fuel on their first 1,500 kWh of monthly consumption while improving the long-term sustainability of the electricity system upon which the entire Territory depends.

What Customers Can Do

BVIEC also recognises that some households and businesses may regularly consume more than 1,500 kWh, particularly where air-conditioning, refrigeration, water heating or other equipment operates for extended periods. Customers are encouraged to review the consumption information shown on their monthly electricity bills so they can better understand their usage.

Where practical, customers can also reduce consumption by ensuring air-conditioning systems and other major appliances are properly maintained, avoiding unnecessary operation of high-energy equipment, using energy-efficient appliances and ensuring cooled spaces are properly sealed.

BVIEC will continue to provide information to help customers understand how the adjustment will be applied and what it may mean for their individual electricity bills.

Our commitment remains unchanged: to provide safe, reliable electricity while keeping customers informed and ensuring that the Corporation remains financially and operationally capable of serving the British Virgin Islands now and into the future.

Further customer guidance will be provided as the measure is implemented.