HAMILTON, Bermuda, CMC – The Bermuda government says it welcomes the announcement by the Bermuda Electric Light Company Limited (BELCO) that base electricity rates will be reduced for all meters read on or after January 1, 2026.
Families are under real pressure due to rising costs. Any reduction in the price of an essential service like electricity is significant, and the Regulatory Authority’s decision will provide meaningful relief for households across the island,” Home Affairs Minister Alexa Lightbourne said.
On Monday, BELCO advised that, following approval by the Regulatory Authority of Bermuda, electricity tariffs will change for all meters read on or after January 1, 2026.
It said base electricity rates will decrease for all meters read after that date, and the fuel adjustment rate (FAR), which is set quarterly, will remain at 13.799₵ per kilowatt hour in the first quarter, resulting in lower bills for the customers in the New Year.
For a low-usage residential household with a consumption of 200 kilowatt-hours per meter reading cycle, the monthly bill will decrease by approximately US$5.74. In contrast, for the average residential household whose consumption is 650 kilowatt-hours per meter reading cycle, the monthly bill will decrease by approximately US$20.80 after the discount.
For a high-usage residential household with a consumption of 1,500 kilowatt-hours per meter reading cycle, the monthly bill will decrease by approximately US68.54 after the discount.
“Over the past year, we have undertaken a comprehensive review of our operations at BELCO to identify opportunities for greater efficiency and cost savings that benefit our customers,” said BELCO’s president, Wayne Caines.
“These efforts have enabled us to achieve operational improvements that are being passed on to our customers through lower base electricity rates, which will be seen on your bills in January. BELCO remains committed to continually assessing its operations and associated costs, while ensuring that we reliably meet the energy demands of our customers,” he added.
The government said the rate reduction complements its wider affordability drive, including the Affordable Bermuda Basket. This targeted programme delivers discounts on a core list of staple groceries and household essentials through participating retailers.
It added that this, coupled with lower electricity bills, helps to ease the pressure where it matters most.
“The Affordable Bermuda Agenda is about aligning Government policy, regulators, and industry partners around one clear goal, lowering the everyday cost burdens for Bermudians. We will continue to work with all our community partners to ensure critical services remain fair, transparent, and affordable,” Lightbourne added.
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