Government reduces electricity bills and increases public assistance

Roadtown, Tortola - Government has announced a one-time 50 percent reduction in electricity bills for all residents of the Territory and an increase in the monthly allowance paid to persons benefiting from the Public Assistance Grant.

Premier Honourable Ralph T. O’Neal, OBE made the disclosure today during statements delivered to the first sitting of the second session of the First House of Assembly of the Virgin Islands.

The measures are in response to the rising cost of electricity caused by fuel prices on the world market and the increase in the overall cost of living in the Territory.

In the statement on electricity bills, the Premier said the measure is intended to help bring relief to residents, some of whom have experienced increases of up to 50% on their monthly electricity bills. “Government has decided that a reduction of 50% will be given on all electricity bills for the month of November 2008 which will fall due and payable in December 2008,” the Premier stated.

Acknowledging the increased financial hardship brought about by the rising cost of electricity, Honourable O’Neal said “we have heard the cries of the many and have listened.”

The 50% reduction for November is a stopgap measure and Government in conjunction with the British Virgin Islands Electricity Corporation (BVIEC) is exploring the possibility of long-term relief. Cabinet is awaiting a revised proposal from the Electricity Corporation that “would allow for relief to consumers, while ensuring that the BVIEC could continue to deliver a reliable supply of electricity to the Territory.”     ~~Adz:Right~~

The initial BVIEC proposal submitted in September was referred back to them by Cabinet and the Premier observed that while the corporation has “retained consultants to advise on a new tariff structure,” consumers are still feeling the pinch of the fuel surcharge applied to their monthly bills.

Honourable O’Neal confirmed that Cabinet will make “the necessary amendments to the legislation at the earliest possible time” once the BVIEC revised tariff structure is submitted and approved.

Announcing an increase in the Public Assistance Grant, the Premier revealed that the 198 beneficiaries of this programme will see their monthly allowance rise between 50% and 100%, effective December 1, 2008. “This is yet another attempt to address the effect on the people of this Territory on the increased cost of living and the financial crisis,” Honourable O’Neal told the House.

Single persons will benefit from a 100% increase and will now receive $200 monthly, two and three person families will get a 70% increase, receiving $255 and $340 respectively, families of four will receive $360 while families of five will be given $375.

Disabled and elderly persons who benefit from public assistance will get a 50% increase in the monthly grant. Additionally, the funeral grants paid to persons receiving public assistance will increase from $1,400 to $2,500.

Public assistance grants were last increased in 1997 and the Premier acknowledged that “over the past ten years there has been a steady and consistent economic growth rate of between 3% and 11% and cost of living expenses have skyrocketed by as much as 35% and 38%.

Government remains acutely aware of the impact of rising cost of living in the Territory and is committed to instituting appropriate measures to bring relief to residents.