To learn more about the Fuel Adjustment Rate (FAR), visit: Understanding the Fuel Adjustment Rate | BELCO
Hamilton,
Bermuda
Bermuda Electric Light Company Limited (BELCO) today advised that beginning 1 April 2025 there will be an increase in the Fuel Adjustment Rate (FAR).
With the approval of the Bermuda Regulatory Authority, the FAR will increase from the existing rate of 13.360 cents per kilowatt-hour (kWh) to 15.515 cents per kWh. The FAR is comprised of 13.637 cents per kWh FAR and 1.878 cents per kWh Government tax on fuel.
The FAR reflects the total cost to deliver fuel to the BELCO central plant and is comprised of two parts – the fuel adjustment and Bermuda Government taxes. The fuel adjustment is based on the total cost of purchasing fuel and includes shipping costs.
The FAR is calculated quarterly and rises and falls as the purchase price of BELCO’s fuel rises and falls. The FAR is a cost recovery mechanism and both revenue and earnings neutral as 100% of the cost and any savings due to a reduction in BELCO fuel costs are passed on to customers.
The breakdown of the new tariffs can be found on BELCO’s website at belco.bm.
For a low-usage residential household whose consumption is 200-kilowatt hours per meter reading cycle, there will be an increase of approximately $4.31 to a monthly bill (after discount).
For the average residential household whose consumption is 650-kilowatt hours per meter reading cycle, where the majority of Bermuda residential customers fall, there will be an increase of approximately $14.01 to a monthly bill (after discount).
For a high-usage residential household whose consumption is 1,500-kilowatt hours per meter reading cycle, there will be an increase of approximately $32.33 to a monthly bill (after discount).
BELCO President Wayne Caines said, “We understand that any increase in electricity costs impacts our customers. This adjustment reflects the global reality of fluctuating fuel prices that are beyond our control. We want to assure our customers that BELCO remains committed to exploring energy solutions that will help stabilize costs in the long term. In the meantime, we encourage customers to visit our website for energy-saving tips that can help manage consumption and reduce monthly bills.”
BELCO customers can learn more about their bill as well as tips on energy efficiency and ways to reduce their bill at belco.bm.
