Effective January 1, 2023, electricity bills in Bermuda will be reduced by a weighted average of 1.7% across all customer groups, according to Bermuda Electric Light Company Limited (BELCO)
The average residential customer using 650 kWh per month will see a $6 decrease in their bill during the first quarter of 2023.
BELCO said that they have worked tirelessly during the last few years to increase operational efficiencies to reduce customer impact and will continue to do so.
“We are acutely aware that high energy costs are a burdensome expense for many in Bermuda who are struggling. As we work towards becoming a more sustainable company, Belco remains committed to increasing our efficiencies while ensuring that we can reliably meet the energy demands of Bermuda.”
However, the Regulatory Authority of Bermuda has allowed BELCO to increase tariffs in accordance with fuel costs during the coming year.
Fuel for energy generation is the largest segment of the per kWh rate. The fuel cost is recovered through the fuel adjustment rate (“FAR”). It reflects the total cost to deliver fuel to BELCO’s central plant and comprises two parts — the fuel adjustment and Bermuda Government taxes on fuel.
“The fuel adjustment rate (FAR) may subsequently be adjusted during the 2023 period as a result of changes in Belco’s fuel costs.”
The FAR is approved by the RA quarterly and has decreased from 16.874 cents from October to December 2022 to 14.304 cents from January 1st to March 31st, 2023.
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