Hamilton,
Bermuda
Bermuda Electric Light Company Limited (BELCO) today provided a response to customers enquiring about high energy bills.
BELCO customers are charged for the consumption of electricity – the higher the usage of electricity the higher the bill. During the last few months there have been prolonged periods of high temperatures and humidity that may have caused customers to run air-conditioning which requires large amounts of electricity, and this would have led to higher bills. The larger the difference between the outdoor temperature and the desired indoor temperature, the more energy required from your cooling system.
The Retail Tariff Base Rate for electricity is approved by the Bermuda Regulatory Authority and communicated to the public. The last Base Rate change was made on January 1st 2023. In addition to the Base Rate is the Fuel Adjustment Rate (FAR). The FAR is adjusted quarterly and based on the price of fuel and is a pass-through cost to the customer. BELCO makes no profit from the FAR. The last FAR adjustment was on July 1, 2023, and is currently 16.513 cents per kilowatt hour(kWh), which includes 4.581 cents per kWh Government Tax.
Customers who do not have an AMI meter installed require their meter to be read manually each month. Customers are asked to provide access to BELCO meter readers but when they cannot be accessed for various reasons an estimated bill is generated. Estimated bills are based on the average daily usage of the previous three months and the billing statement will have a notice stating it is an estimated bill.
Most estimates are in line with the customer’s usage. However, once an accurate reading is obtained the account will naturally “true up”. If a customer has paid on an overestimated statement, the credit balance difference is applied to the account. If usage was underestimated, BELCO will cancel the previous statement(s) and adjust the previous estimate using the average daily consumption between the last and most recent accurate meter readings, spreading the usage evenly over the subsequent billing periods. BELCO does not charge customers for estimate adjustments older than six months.
Some customers may question why their bill is high when they have been on vacation. A vacation may span across multiple billing periods (billing periods are not the calendar month) reducing the expected usage reduction on a given statement. In addition, while on vacation, some customers may still have high-energy usage appliances such as fridges/freezers and water heaters plugged in and using power.
Customers can create an account on the BELCO website and if they have an AMI meter installed, they can view daily and hourly usage information which demonstrates usage patterns over specific periods.
BELCO President Wayne Caines said: “I understand some of our customers’ frustration with high BELCO bills this summer. It has been a hot, humid summer and it is likely many customers have been running air conditioning which can substantially increase their bills. If customers feel their bill is not correct, they should call our Customer Experience team who can answer any questions or concerns. I also urge customers to visit our website where they can find many helpful tips on energy efficiency which will help to reduce their bills.”