Periodically we have our rates, also known as retail tariffs, reviewed by the Regulatory Authority of Bermuda (RA). The RA is responsible for setting rates/tariffs under the Electricity Act 2016 and the Retail Tariff Methodology.
The retail tariff is the rate customers are charged for electricity and the legislative framework that enables us to generate a total revenue that recovers reasonable costs of service.
Current Retail Tariff:
The three main tariff consumer categories are residential, commercial and demand (large commercial customers). There are also dedicated retail tariffs for specific customer groups such as street lighting, quarry, Government, and churches.
Within each customer category, the current retail tariff consists of a facilities charge, energy charges, demand charges, operating costs, fuel adjustment rate (FAR), Regulatory Authority of Bermuda fee, Government authorisation fees, and other statutory fees.
The Process:
The retail tariff review is a regulatory process conducted by the RA to review our retail tariff proposal. The process to adjust electricity rates currently begins with the RA requesting that we apply for an allowed revenue detailing proposed activities for the relevant period and the associated costs. The RA reviews and adjusts the allowed revenue. The approved allowed revenue is then used to derive new electricity rates, also known as retail tariffs.
Currently the key steps in the review process are as follows:
- The RA requests that we submit an application.
- We create and submit an application for the revenue we are allowed to earn for the relevant period, also known as allowed revenue.
- The RA conducts its review of our submission, including additional information requests and site visits.
- We submit additional information as requested.
- The RA conducts its final review and adjustments to our allowed revenue.
- An order is issued, setting our allowed revenue for the relevant period.
- The RA requests that we propose retail tariffs in alignment with the approved allowed revenue.
- We submit our proposed retail tariffs for approval.
- The RA reviews our proposed retail tariffs.
- The RA approves BELCO’s retail tariffs for the relevant period.
Once the review process has been completed and an order is made, the rate change per kWh is implemented.
As we work towards becoming a more sustainable company, we remain committed to increasing our efficiencies while ensuring that we can reliably meet the energy demands of Bermuda.
Our customers can learn more about the retail tariff as well as tips on energy efficiency and ways to reduce their bill at belco.bm.