HAMILTON, Bermuda, CMC – The Regulatory Authority (RA) has announced a decrease in the fuel adjustment rate (FAR) used by the Bermuda Electric Light Company (Belco) to charge consumers after Home Affairs Minister Walter had threatened court action over recent rate increases.
The announcement by the RA follows the controversial increase that came into effect on October 1 and is attributed to a rise in global prices.
Roban had demanded a review of the RA’s methodology and threatened to take the RA to court after the regulator upheld the rate increase.
Roban had argued that higher electricity bills threatened the island’s economic recovery and hurt low-income residents, already struggling with the high cost of living.
The RA said the FAR will drop from US24.5 cents per kilowatt-hour to US18.4 cents per kWh, effective January 1.
It said the decision came after a review of Belco’s 2024 first-quarter FAR submission, indicating a decrease in fuel pricing.
The RA has previously reviewed the methodology for calculating the FAR with “the best interests of the community in mind” and “ensuring a fair, competitive, and innovative marketplace.
“The RA is dedicated to fostering a sustainable and advantageous environment for Bermuda. By leveraging the expertise of our knowledgeable team, we make data-driven decisions aligned with our objectives under the legislation.
“This adjustment in the FAR reflects the RA’s steadfast commitment to fulfilling its mandates under the legislation.”
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