No one believes BVIEC is 'subsidising' electricity cost– Skelton-Cline
BVIEC General Manager Dr Neil M. Smith, speaking on the Tuesday, June 18, 2024, edition of the radio show 'Eye on the Future of the Nation', said the cost of fuel remains a big factor in the cost of electricity, with some 50% of the bill reflecting the cost of fuel in the VI.
“Whenever the cost of fuel goes up, even if you consume the same amount of electricity, [the bill] goes up,” Dr Smith said.
He added that over time, the cost of electricity has gone up at the same rate as the cost of fuel. "so your fuel bill is actually tracking the inflation rate of diesel fuel in this country,” he added.
Mr Smith said; however, the bill is being subsidised by BVIEC with the policy direction coming from the government.
Consumers not paying the full fuel cost - Mr Smtih
“On every gallon of fuel that is consumed… BVIEC subsides 81.5 cents. So if the fuel cost to BVIEC is $3 per gallon, we absorb 81 cents and the other… is transferred to the consumer,” he said.
Co-host Claude O Skelton-Cline said; however, that nobody believes that the cost of fuel is being subsidised due to the high cost of electricity.
According to Mr Smith, Virgin Islanders don’t read enough to know that the regulations have been set since the 70s, which require BVIEC to absorb a percentage of the cost of fuel to generate electricity.
“They read social media, they read the pedestrian stuff… but the serious matters… those are the things that we tend to miss,” he said while adding that the 81 cents per unit remains an opportunity cost to the corporation.
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11 Responses to “No one believes BVIEC is 'subsidising' electricity cost– Skelton-Cline”
Because he Mr Sca**er was not given a contract to look at the books of BVIEC. why are you try to discredit the company. Mr Smith is telling the truth. When fuel price goes up on the market your light bill goes up and down when it comes down. The price the company receives from the customer ls is a set price from since 1973 on the Dollars. Plus you have to stay relevant because you’re time be up a long time ago since the CIO exposed you.
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