Skelton warns BVI power system faces collapse without fuel fix

Ronnie Skelton, an opposition politician who previously led the BVI Electricity Corporation, has cautioned that the territory's power supply could deteriorate to the level now seen in the US Virgin Islands if fuel expenses continue to outpace what the utility can manage.

Speaking on National Democratic Party radio, Skelton argued that BVIEC operates with such tight financial margins that sustained fuel price increases will eventually force cuts to maintenance work. Without upkeep, he warned, the electrical system will fail.

"I think they running at margin revenue now, and eventually, if that continues, you will have no maintenance. And then you will have a greater electrical problem that we have in the U.S.V.I today," Skelton said.

The concern is urgent. In August, BVIEC customers received bills reflecting record fuel costs from the previous month. Even so, the Corporation had already absorbed over $1 million in fuel expenses that month on behalf of ratepayers. Fuel prices have climbed from 66 cents to $2 per gallon, a jump that far exceeds what the utility's tariff structure can absorb.

Government has deployed emergency measures to ease the burden. It provided $3 million in subsidies spanning March, April and May, offered a credit toward August bills, and approved a subsidy for September. Cabinet has now committed a further $2.5 million to support electricity subsidies through the end of 2026.

Skelton linked the crisis to global conflict. The war in Iran has pushed fuel prices higher, and he warned that if fighting persists, the Government's financial capacity to shield residents from those increases will shrink as well. "If the Government doesn't have a huge pocket, and this war goes for a long time, then we have a problem, a major problem," he said.

He called for a coordinated, lasting approach rather than temporary relief. Recovery from utility collapse is lengthy: "Once utilities go into difficulties, it takes 12, 18 months to go again," Skelton said. He expressed belief that coordinated action could yield solutions but cautioned against delay.