BELCO ‘Welcome The New Rate Reduction’

December 18, 2019

[Updated] “Customers will see a modest reduction of overall rates following approval by the Bermuda Regulatory Authority,” BELCO said today.

“The new rates were developed with extensive effort by BELCO and the RA to implement the retail tariff methodology issued by the RA in 2018. These new rates will be applied to all meter readings as of January 1st, 2020. Further detailed information on these changes will be provided in the coming weeks,” the company said.

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BELCO President Dennis Pimentel said: “BELCO remains committed to keeping rates as low as possible and we welcome the new rate reduction.

“Although we have encountered significant cost pressures during recent years, including inflation and decreased demand for electricity resulting from population decreases, BELCO has continued to invest approximately $250 million in our infrastructure.

“These upgrades will allow us to import renewables onto the grid, ensuring reliable and sustainable electricity for Bermuda.

“Despite these pressures and investments, we have not raised customers’ electricity rates. Instead, we have focused on efficiencies and savings. For example, the North Power Station and Battery Storage System are expected to save $20 million per year on fuel costs.

“We are projected to save more than $30 million in expenditures compared to 2015 through efficiencies and material savings.

“We look forward to continuing to work with the RA on reducing rates for BELCO customers and providing a safe and secure energy future for Bermuda.”

Update 7.22pm: An ‘Illustrative Bill’ from BELCO shows the general impact of the changes [PDF here]:

BELCO Illustrative Bill Impacts January 2020

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Comments (11)

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  1. DF says:

    3 press releases – the RA, the Minister and now belco and all 3 do not say what the reduction is…. how odd. You know if it was a significant amount we would have been treated to a press conference

  2. Toodle-oo says:

    If anyone really believes that BELCO ‘welcomes the new rate reduction ‘ I have a bridge to sell you.
    My guess is that people with monthly bills over $500 might see a $10 reduction. People with under $220 p/m bills will see a $4 reduction , if that.
    Then they’ll invent other charges outside of the RA’s remit to implement , like higher fuel surcharges and ‘terminal charges’ , to completely nullify any reductions.
    Watch this space.

    • NCM says:

      Firstly, you do realise that the people who work at Belco also pay for their electricity at the same rate as everyone else so I’m sure they would welcome a reduction. Secondly, all rates are approved by the regulatory authority so Belco can’t simply invent some new charge and add it to the bill – it has to be approved by the regulatory authority.

      • SMS says:

        Did BELCO change their policy? BELCO employees use to receive a 30% discount off their bills. I believe their retirees receive the same discount to date.

      • Wahoo360 says:

        You are correct that BELCO employees pay the same rate as all other residential customers. However, they enjoy a 30% early payment discount instead of the usual 5% like everyone else…

    • Real Deal says:

      in a few years it wont matter any more

  3. Ben says:

    Ok, I call Bull…… so let’s talk about when they killed the advantage to have solar by reducing the payback to peanuts. My original system payed for itself in 5 yrs. My new system won’t pay for itself for I don’t know how many years. 15 maybe.

    Thankfully new battery storage technology has a great return because I can have the Belco meter removed. How good is that. Welcome to the new reality. We do t need belco whennwe have sunshine almost every day. I also won’t have to wait after hurricanes for them to show up. Yaaaaa!!

    By by Belco!

  4. Observer says:

    So with the illustration of the average household savings this is amazing, well done RA. A suggestion go the house and table an amendment to the taxation of fuel levied upon Belco and reduce that and then the customer will see a real reduction in there bill. The RA has manipulated the figures so that when they go in for there increase the taxpayer will continue to pay the same cost in there bill.

  5. Warrior says:

    They should drop the new tax and the Regulatory charge first and give seniors discount when they pay their bill.

  6. Dog Breath says:

    The way the PLP were trumpeting about this massive reduction I thought I could afford a new boat….

  7. Y-Gurl says:

    This so called reduction will do, little or nothing to help with our massive energy costs that are contributing in no small way to increasing prices in the retail sector