Premier and Minister of Finance Dr. Natalio Wheatley has signalled that residents could face higher water rates under the newly established Virgin Islands Energy and Water Corporation (VIEWCo), arguing that the current heavily subsidised system is financially unsustainable.
Speaking in the House of Assembly last evening, Dr. Wheatley said customers are being charged far less than the actual cost of producing water and VIEWCo would need appropriate rates to remain viable.
“The money that we pay to produce water is so far from what the customer is being charged because it’s heavily subsidised,” Dr. Wheatley stated.
“You think an electricity corporation can afford to subsidise water to that extent? No, they can’t. So, they’re going to have to be able to charge water rates to assist the operation to be viable.”
He added: “You have to be able to charge the rates which are appropriate to make the model work.”
The remarks immediately drew questions from Sixth District Representative and Opposition Member Myron Walwyn, who pressed the Premier on whether he was quietly announcing another increase for residents.
“Is the Premier suggesting that his next move is to increase water rates in the country? Because that is what I just gathered from what he just said. Is that an announcement through the back door?” Walwyn asked.
Dr. Wheatley did not retreat from his position, telling the House that he was “doubling down”.
“I’m saying to you, responsible governance is to ensure that you are properly able to pay for the operations,” he said.
The Premier argued that VIEWCo’s business model would expand the customer base, improve collections and ensure more residents receive water. He pointed to widespread non-payment, unmetered connections and non-revenue water as major weaknesses in the current system.
“A lot of persons are not even paying for water right now. Even some people who are paying, they call it non-revenue water. A lot of persons don’t have metres,” he explained.
“I guarantee you, under VIEWCo, you will have persons getting more water in the Virgin Islands because of the business model.”
Dr. Wheatley also questioned the effectiveness of the existing Water and Sewerage Department structure, arguing that there is little financial incentive to improve service.
“Whether people get water or they don’t get water, people get paid the same. Their salary doesn’t change,” he said. “When you’re selling water, you have to be able to collect enough revenue to operate.”
In June, the Government announced that the transition to VIEWCo had officially begun following the passage of legislation merging the BVI Electricity Corporation and the Water and Sewerage Department.
The warning over water rates comes as large businesses also face an increase in electricity costs. Opposition members have argued that businesses will inevitably pass those additional expenses on to consumers, further squeezing households already struggling with the rising cost of living.
Speaking in the House of Assembly last evening, Dr. Wheatley said customers are being charged far less than the actual cost of producing water and VIEWCo would need appropriate rates to remain viable.
“The money that we pay to produce water is so far from what the customer is being charged because it’s heavily subsidised,” Dr. Wheatley stated.
“You think an electricity corporation can afford to subsidise water to that extent? No, they can’t. So, they’re going to have to be able to charge water rates to assist the operation to be viable.”
He added: “You have to be able to charge the rates which are appropriate to make the model work.”
The remarks immediately drew questions from Sixth District Representative and Opposition Member Myron Walwyn, who pressed the Premier on whether he was quietly announcing another increase for residents.
“Is the Premier suggesting that his next move is to increase water rates in the country? Because that is what I just gathered from what he just said. Is that an announcement through the back door?” Walwyn asked.
Dr. Wheatley did not retreat from his position, telling the House that he was “doubling down”.
“I’m saying to you, responsible governance is to ensure that you are properly able to pay for the operations,” he said.
The Premier argued that VIEWCo’s business model would expand the customer base, improve collections and ensure more residents receive water. He pointed to widespread non-payment, unmetered connections and non-revenue water as major weaknesses in the current system.
“A lot of persons are not even paying for water right now. Even some people who are paying, they call it non-revenue water. A lot of persons don’t have metres,” he explained.
“I guarantee you, under VIEWCo, you will have persons getting more water in the Virgin Islands because of the business model.”
Dr. Wheatley also questioned the effectiveness of the existing Water and Sewerage Department structure, arguing that there is little financial incentive to improve service.
“Whether people get water or they don’t get water, people get paid the same. Their salary doesn’t change,” he said. “When you’re selling water, you have to be able to collect enough revenue to operate.”
In June, the Government announced that the transition to VIEWCo had officially begun following the passage of legislation merging the BVI Electricity Corporation and the Water and Sewerage Department.
The warning over water rates comes as large businesses also face an increase in electricity costs. Opposition members have argued that businesses will inevitably pass those additional expenses on to consumers, further squeezing households already struggling with the rising cost of living.
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