December 16, 2022,Hamilton, Bermuda: The Regulatory Authority of Bermuda (“the RA”), has today announced that effective January 1,2023, approximately 85% of all customers classes will experience a decrease in the 2023 Retail Tariff, which is part of the BELCO bill.
Specifically, on average, residential rates will decrease by 0.25%, commercial rates by an average of 1.9 %, and demand rates (larger users), by an average of 3.7%.
The reduction of the RetailTariff is largely attributed to the significant decrease of global fuel costs and the projected subdued global economic growth for the coming year. For clarity, while BELCO’s base rate per kilowatt hour for providing electricity to customers will increase, the substantial reduction in the price of the Fuel Adjustment Rate (‘the FAR’) will result in an overall decrease in the Retail Tariff.
It is further important to note that as the FAR is reviewed on a quarterly basis by the RA, Retail Tariff rates may increase or decrease depending on the cost of fuel.
Click on the following links to read the Retail Tariff Public Report and the Retail Tariff Review Decision and Order.