Electricity Prices Increase Effective April 1, 2022

“While prices continue to rise during multiple crises, protecting Consumers remains a key focus for the RA and Consumers can help.”

Why prices increase during multiple crises:

Inflation levels are the highest in 40 years:

The Fuel Adjustment Rate (FAR) is increasing:

  • The FAR is being impacted by the war in Ukraine
  • Cost of fuel is very volatile – almost doubled from $70 per barrel in January, 2022 to close to $130 per barrel in March, 2022


BELCO’s Base Rates Are Increasing:

  • For example, the cost of building, operating, and maintaining BELCO’s infrastructure to produce, transmit and deliver electricity


PROTECTING CONSUMERS REMAINS A KEY FOCUS FOR THE RA:

The RA issued an Emergency General Determination (EGD) in March, 2020, to ensure the community stayed connected and provided with financial relief to consumers throughout COVID-19 pandemic

The Retail Tariff decreased for the past two years (2020 & 2021) (the rate at which electricity per kilowatt hour is sold to Consumers)

  • The Retail Tariff process is designed to balance the interests of Consumers while ensuring that BELCO can recover their reasonable costs and investments


Revenue Allowance: The RA rejected BELCO’s proposed rate increase of 16%

  • The RA acknowledges that BELCO recently made investments to ensure that Bermuda residents have access to a reliable supply of electricity. However, based on current market conditions and findings of the extensive Retail Tariff review, the RA determined for the Retail Tariff to increase by 7.6%
  • The Retail Tariff will increase by approximately 1 to 2 cents per kWh based on the Consumer’s tiers of Usage Charges on your BELCO bill


Here’s how consumers can help to reduce their monthly BELCO bill:

Be aware of your energy consumption:

  • Water Heaters – using a smart plug/app or timer to manage the use of your water heater can save up to 12% on your energy consumption
  • LED Lights – use approximately 1/3 less energy than traditional lights, and last years longer than incandescent bulbs
  • Refrigerators & Freezers – setting the refrigerator at 40 degrees F and freezer at 0 degrees F keeps food safe and can save up to 25% on your energy usage
  • Food Prep – cooking and re-heating food in a small convection oven or toaster can save up to 50% on energy usage than larger appliances
  • Laundry – using cold water to wash and hanging clothes to dry on a clothesline can save up to 10 kwHs of electricity for each load of laundry
  • Air Conditioning – setting your air conditioner(s) at 78 degrees F, or turning the thermostat back 7 to 10 degrees F from your normal settings for 8 hours per day, can save up to 10% on your energy usage