Bermuda Electric Light Company Limited (BELCO) today highlighted changes to customer bills following the Government’s reduction of the Customs duty on fuel.
On Friday, July 19, 2024, the Government tabled the Customs Tariff Amendment Act 2024 which will reduce the tax on BELCO’s fuel.
The change will take effect on 1 August 2024 and will be applied to all meter readings taken on or after that date. This coincides with the recently announced change to the Base Electricity Rate that also comes into effect on 1 August 2024.
Fuel for energy generation is the largest segment of the per kWh rate. The cost of fuel is recovered through the fuel adjustment rate (“FAR”). The FAR 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 on fuel.
The 60% reduction in fuel tax equates to a 2.14 cent reduction in the FAR. The FAR is now 17.574 cents per kWh for all meters read on or after 1 August.
Low-usage households with a consumption of 150-kilowatt hours per meter reading cycle will see an increase of approximately $2.57 on their monthly bill.
The average household with a consumption of 600-kilowatt hours per meter reading cycle, which is the majority of Bermuda residential customers, will see an increase of approximately $9.46 on their monthly bill.
High-usage households with a consumption of 1,500-kilowatt hours per meter reading cycle will see an increase of approximately $41.70 on their monthly bill.
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.
