News Release: HAMILTON, Bermuda – Bermuda Electric Light Company Limited will implement new rates for all customers beginning Friday, April 1st, 2022. Rates have been set by the Regulatory Authority of Bermuda (RA) in the third retail tariff review to be conducted by the RA since it commenced regulating electricity in Bermuda.
The Regulatory Authority is responsible for setting tariffs under the Electricity Act 2016 and the retail tariff methodology that was issued by the RA in 2018.
The RA has approved a rate increase for the average residential customer from 44 cents per kilowatt hour (kWh) to 49 cents per kWh beginning April 1st.
Fuel is the largest segment of the per kWh rate, which has increased from approximately 11 cents at the end of March to approximately 14 cents beginning April 1st. Government tax on fuel remains at 5 cents per kWh. (The total Fuel Adjustment Rate is an increase of the existing FAR from $0.1557 to $0.1890).
The FAR, which is approved by the Bermuda Regulatory Authority, reflects the total cost to deliver fuel to BELCO’s central plant and is comprised of two parts – the fuel adjustment and Bermuda Government taxes.
BELCO bills also include an RA fee of 1 cent per kWh which will not change. However, in 2021 BELCO deferred the collection of revenue over five years, with recovery commencing in 2022 and equating to 1 cent per kWh, which will now be included in bills as of April 1st.
Other costs that are reflected in monthly bills include labour [the work carried out by more than 230 BELCO employees to operate the plant and transmission, distribution and retail operations] which will increase from 9 cents per kWh to 10 cents, operating costs which will remain at 3 cents per kWh and Plant & Equipment which will increase from 8 cents to 9 cents per kWh.
The final part of the monthly bill is BELCO’s income which has been reduced from 7 cents per kWh to 6 cents per kWh as of April 1st.
BELCO has worked hard during the last few years to increase efficiencies in running the plant and operations to reduce the impact on customers and continues to do so.
“BELCO is acutely aware that high energy costs are a burdensome expense for many families in Bermuda who are struggling, but BELCO remains committed to ensuring that we can reliably meet the energy demands of Bermuda while laying the foundation for moving Bermuda to a sustainable energy future with a goal to achieve carbon net zero by 2050.
“BELCO customers can learn more about their bill as well as tips on energy efficiency and ways to reduce their bill at www.belco.bm.