The BVI Electricity Corporation (BVIEC) is reporting that in 2025 it has absorbed $13,676,910.26 in fuel costs on behalf of customers, averaging more than $37,400 daily to help keep electricity affordable across the Territory. Photo:Facebook

In a press release the country’s sole electricity provider stated that these absorbed costs represent direct savings to households and businesses, often unseen, but reflected in what customers did not have to pay on their electricity bills. Photo: BVIEC

In a press release on January 19, 2026, the country’s sole electricity provider stated that these absorbed costs represent direct savings to households and businesses, often unseen, but reflected in what customers did not have to pay on their electricity bills. 

Fuel incurred costs exceeded 52.4 million

BVIEC said, "Over the same period, the incurred total fuel costs exceeded $52.4 million to generate electricity for the Virgin Islands. Of this amount, approximately $38,762,924.00 was recovered through the fuel surcharge, which is applied strictly in accordance with existing legislation."

The company added that the remaining balance, over $13.6 million, was absorbed by the Corporation under the long-standing fuel subsidy framework, reducing the overall impact of fuel price volatility on customers.

In July 2025, the BVIEC recorded the largest monthly fuel subsidy, totalling $1,474,021.80, stating that, "July was also the month with the highest total fuel cost, amounting to $3,630,979, driven by an increase in fuel prices that averaged approximately $2.60 per US gallon, and during that same month, residents consumed 17,367,651 kilowatt-hours (kWh) of electricity."

October 2025 peak month for electricity demand

According to the release, "While July reflected the highest fuel-related costs, October 2025 marked the peak month for electricity demand, with 18,382,855 kWh sold, underscoring how sustained electricity usage continues to place pressure on fuel requirements even when fuel prices fluctuate."

Fuel price volatility remained a defining factor throughout the year, BVIEC noted. "January 2025 recorded the highest average fuel price, at approximately $2.68 per US gallon, followed by February at $2.64 and November at $2.61, highlighting the ongoing impact of global fuel markets on electricity generation costs in the Territory."

Dr Neil M. Smith, General Manager of BVIEC, stated, “These figures represent real and meaningful savings for our customers, and in 2025, BVIEC absorbed more than $13.6 million in fuel costs so that customers did not bear the full impact of rising global fuel prices. This support happens quietly in the background, but it plays a critical role in keeping electricity affordable across the Virgin Islands.”

No rate increases for customers

The company added that electricity rates charged to customers remain fixed by law and have not increased for several decades; therefore, any changes customers may observe on their monthly bills are not driven by rate increases, but by fuel price volatility and individual electricity usage, both of which vary from month to month. 

In an effort to promote greater understanding of these factors, the BVIEC launched its Fuel Data initiative, publishing monthly information on fuel costs, fuel consumption, electricity produced, and the portion of fuel costs absorbed by the Corporation. 

Public Relations and Marketing Media Manager at BVIEC, Kamal Haynes, said, “We continue to share this information because transparency builds trust and understanding by making our fuel data publicly available. Customers can clearly see how much fuel costs, how much is passed through, and how much BVIEC absorbs on their behalf. Any fluctuations in bills are not the result of rate increases, but of global fuel price movements and usage patterns."