Explanation of Fuel Adjustment Rate

With the approval of the Regulatory Authority, the Fuel Adjustment Rate increases to 12.90 kilowatt-hours sold for meter readings taken on or after November 1, 2018 and until further notice. BELCO does not profit when the fuel adjustment rate increases.

The Regulatory Authority sets the fuel adjustment rate every month based on a calculation that includes the cost of fuel and projected usage, and starts with a base cost of $30.00 per barrel of fuel. The cost of fuel for BELCO is made up of: the actual cost of the fuel purchased on the world market, plus transportation and a static Bermuda Customs duty of $31.79 per barrel.

As the actual cost of fuel changes on the world market, the fuel adjustment rate changes. World market prices fluctuate greatly due to the growing demand for fuel around the world, limited refineries to process crude oil, and the impact of political, economic and other events.

BELCO endeavours to minimise the cost to the customer by negotiating the best possible prices, purchasing when the market is low, selecting the most economical fuel and maximising plant efficiency.

The fuel adjustment rate is announced in The Royal Gazette by the first day of each month.

Fuel Adjustment Rate, Year-on-Year Comparison
(cents per kilowatt hour sold)

  2018 2017 2016 2015 2014 2013 2012 2011
January 10.25 8.00 10.00 12.00 15.50 16.50 17.50 13.50
February 10.25  8.00  10.00  12.00 14.50  17.50 17.50 13.50
March 10.25  9.00  9.75  12.50 15.50  18.00 17.50 13.50
April 10.25  10.50  9.00  12.50  16.00  18.00 17.50 13.50
May 11.50  9.50  7.65  11.50  16.50  17.00 17.50 13.50
June 12.00  10.50  7.65  11.50  16.75  18.00 19.50 14.15
July 13.50  11.50  8.75  13.00  17.75  18.00 20.50 14.80
August 12.90  11.50  8.75  13.00  18.50  18.50 19.75 16.00
September 13.50  11.50  10.50 13.00  19.00  19.00 19.75 17.25
October 13.50 11.50  10.20  12.50  17.50  18.50 19.00 17.50
November 12.90 10.75  9.50  12.00  17.50  17.00 16.00 17.50
December   10.75  8.60  11.25  13.00   17.00 17.00 17.50