Customers of BVI Electricity Corporation (BVIEC) would have noticed a significant reduction in their electricity bill for the past several months. Photo: Team of Reporters

The British Virgin Islands Electricity Corporation (BVIEC) Financial Controller, Mr Florencio Taray, has addressed frequently asked questions from the public regarding the revised, transparent electricity bill that came into effect in April 2025. Photo: BVIEC/Facebook

The new transparent electricity bill was introduced to enhance clarity and customer understanding, particularly concerning fuel costs. It provides a detailed breakdown of how electricity charges are calculated, including specifics on fuel-related expenses.

A significant feature of the bill is the itemisation of the BVIEC fuel subsidy, which reflects the corporation's efforts to offset fuel charges for customers.

BVIEC has passed decrease in fuel costs to customers- Florencio Taray

During BVIEC's latest educational mini-series episode, which aired on the company’s Facebook page on June 20, 2025, Mr Florencio explained that global oil prices have been declining recently. As a result, BVIEC has passed this decrease in fuel costs on to its customers.

He noted that fuel rates have dropped from 16 cents to 12.5 cents over the past year, resulting in an approximate 24 percent decrease during the recent billing cycle.

He addressed a common question about how fluctuations in global fuel prices are reflected in billing history—when fuel prices decrease, the fuel surcharge decreases, and when they rise, the surcharge adjusts accordingly.

BVIEC exploring ways to keep electricity bills down

Mr Florencio also discussed why a fixed fuel contract might seem ideal in theory but comes with challenges and risks. He emphasised that BVIEC is continuously evaluating viable options to protect customers from long-term price volatility.

He stated, “The BVIEC has been exploring options to lock in fuel prices over the years. In fact, for the recent fuel tender, BVIEC has asked suppliers if they could propose a fixed fuel rate. However, there are several challenges associated with this approach.”

He added, “Yes, you can lock in fuel prices, but since you would be passing price fluctuations to the supplier, it’s understandable that they would want to include some sort of premium. Additionally, hedging is a complex strategy that requires expertise. Options such as contracts for hedging or forward contracts could entail another layer of costs for BVIEC.”

According to BVIEC, this information was recorded before the recent escalation of conflict between Iran and Israel, which may significantly affect fuel prices in the coming months. Therefore, the information shared reflects billing cycles from May 2024 to April 2025.