Why Are Vincentians Still Facing Disconnections?
As electricity costs continue to place pressure on households, questions are being raised about whether a state-owned utility company should be disconnecting struggling customers and whether more could be done to protect Vincentian families.
The question being asked in communities across St. Vincent and the Grenadines is becoming increasingly difficult to ignore, at a time when ordinary Vincentians are struggling to keep up with rising electricity costs, why are households still being disconnected for non-payment?
The issue is particularly sensitive because VINLEC is not an ordinary private company. VINLEC has been a state-owned entity since 1985, when the Government of St. Vincent and the Grenadines acquired the remaining 51 percent of the company’s shares. That ownership structure raises an obvious public policy question, when a state-owned utility is dealing with citizens who cannot afford their electricity bills, how much responsibility should the Government and the company assume in protecting those households from losing an essential service?
VINLEC’s audited financial statements provide another important part of the discussion. For the financial year ending December 31, 2024, VINLEC reported EC$13.2 million in profit, compared with approximately EC$6.65 million in 2023. Its total equity stood at approximately EC$182.3 million at the end of 2024.
The figures do not mean that VINLEC is simply collecting excessive money from consumers. Electricity generation is expensive, particularly because the company relies heavily on diesel generation and is exposed to international fuel prices. VINLEC has also stated that it does not profit from the fuel surcharge, which is intended to recover fuel related costs.
Nevertheless, the size of the company’s profits raises a legitimate public policy debate, should a state-owned company always seek to maximize or preserve its normal profit margins when its customers are experiencing severe economic hardship?
By August, Prime Minister Dr. Godwin Friday said VINLEC had absorbed more than EC$730,000 of the fuel surcharge for July 2026 as part of efforts to reduce electricity costs for consumers.
The Prime Minister has also publicly addressed the issue of disconnections. In August, he called on VINLEC to show greater flexibility toward customers who are struggling financially, saying that the company should not rush to disconnect people according to the same timeframes used under normal circumstances.
He also emphasized that VINLEC is owned by the people and that ordinary citizens are effectively the company’s shareholders.
That statement however raises another question, If the Government recognizes that families are struggling and has instructed VINLEC to show greater understanding, what specific protections are actually being put in place for households that cannot pay their bills on time? Friday needs to stand up to VINLEC and protect Vincentians because our cries are not helping.
