‘Electricity is the lifeblood of the economy’- Hon Skelton
Skelton made these comments during the Continuation of the Fifth Sitting of the Third Session of the Fifth House of Assembly on Thursday, August 13, 2026, where the House debated the amendments to the Statutory Rates, Fees and Charges Act, 2005.
Minister for Communication and Works, Hon Rymer (R5), during his contribution said the adjustment would apply to consumers who use more than 1,500 kilowatt-hours of electricity.
Hon Skelton, however, said, “Based on my experience, it can’t be so because most customers go 2,500 kilowatt-hours, especially small businesses that run refrigerators and so forth and so on, so therefore this formula is going to carry up their bill; it’s going to do it.”
The Opposition Legislator added, “If you tell me this will not drive up the cost of food for the very people we’re trying to save- the small people, the small man, who goes to the supermarket every day- I will tell you there is some cause for concern.”
Electricity is lifeblood of the economy
Hon Skelton said, “Electricity is the lifeblood of the economy. If it doesn’t exist, if it goes bad, bad things happen to the economy. We could see what is happening to our neighbours next door, where they have power outages almost every day. You don’t want electricity to get to that point.”
He also said that, without a doubt, the Virgin Islands is not immune to the effects of the wars taking place, the problems with the Strait of Hormuz and the overall oil crisis across the globe that have caused an increase in oil prices.
Skelton added that, without a doubt, the Virgin Islands is not immune to the effects of the wars taking place, the problems with the Strait of Hormuz and the overall oil crisis across the globe that have caused an increase in oil prices.
He said that by now, there should be a philosophy for the creation of an electricity tariff.
“The way a tariff is designed is for the big businesses to help subsidise the smaller customers. We think it’s not a subsidy, but it is for the small customers because if everyone were small, the rates would have gone through the roof.”
Short-term solution
Hon Skelton said experts should have also been engaged to do a tariff study for the Virgin Islands (VI), which would have then been rated “based on what we want it to be”.
The amended Statutory Rates, Fees and Charges Act, 2005, is a short-term solution, he stated. “It says to be that the problem we are facing, Madam Speaker, the financial problem electricity is facing, and if we don’t do anything, if we do nothing, the generation will stop, just like in the US Virgin Islands.”
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9 Responses to “‘Electricity is the lifeblood of the economy’- Hon Skelton”
Moreover, the cost per KWh should be set by type of customer, ie, residential, commercial, and industrial. Typically,the residential customer rate per KWh is higher due to lower volume usage.