Legal Documents
Retail Tariff Determination for 2026–2027
Summary
The RA has issued its Order on the Allowed Revenue for the years 2026 and 2027, which directly impacts the retail electricity tariffs charged by BELCO. This decision follows the requirements set out in Section 35 of the Electricity Act 2016 and the RA’s Retail Tariff Methodology General Determination 2025.
Information
Under the Act, the RA must ensure that BELCO, as the Transmission, Distribution & Retail (TD&R) Licensee, can recover reasonable costs through retail tariffs. These costs include investments in infrastructure (plus a fair return), operating expenses, fuel, purchased power, government fees, and regulatory charges.
The Allowed Revenue is subject to adjustments based on:
- Fluctuations in actual fuel costs (true-up mechanism)
- Changes in electricity sales volumes
- Performance-based incentives
- Efficiency improvements
Key inputs to setting the Allowed Revenue include BELCO’s regulatory asset base, capital expenditures, operating cost allowances, and energy sales forecasts. The goal is to support fair pricing, reliable service, and transparent cost recovery for Bermuda’s electricity sector.