BELCO Retail Tariff Reduced As Of June 1st

May 17, 2021 | 3 Comments

Bermuda Electric Light Company Limited [BELCO] has advised that “the Retail Tariff for customers will be reduced effective June 1st, 2021 as announced May 16, 2021 by the Regulatory Authority.”

BELCO President Wayne Caines said: “BELCO is sensitive to the needs of the Bermudian population – both residents and businesses alike. We have been mindful of the economic impact of Covid-19 as we implemented a Bill Deferment programme to assist customers who were financially impacted by Covid-19 and initiated the suspension of customer disconnections for non-payment during the Shelter in Place and Stay at Home orders.”

Mr. Caines added: “BELCO is committed to reducing the cost of electricity, especially during these challenging economic times. With increased infrastructure investment, rising fuel prices, as well as declining customer volumes brought on by the pandemic, rates would have naturally risen had unique measures not been taken to hold rates at current levels or even bring them down slightly.”

The company said, “In an effort to reduce rates, BELCO proposed a revenue deferral to the Regulatory Authority to ease the impact on customers for the balance of 2021 as the country begins to rebound from the economic impacts of Covid-19.

“While these deferrals are helpful in the short-term, they will create rate pressure in the coming years so BELCO continues to work on increasing efficiency and reducing operating costs while supporting initiatives such as the adoption and expansion of electric vehicles on the island along with increasing Bermuda’s appeal as a preferred international business and tourist destination.

“While revenues are being deferred, BELCO is not deferring investment to ensure the island’s electric generation and distribution infrastructure is resilient, reliable and ready for the addition of renewables. BELCO, alongside its parent company Algonquin Power & Utilities Corp., is committed to ensuring Bermuda residents have a dependable system that will deliver a more sustainable energy future.”

Mr. Caines said: “BELCO worked with the Regulatory Authority to implement the current Retail Tariff reduction for our customers. While the next couple of rate cycles will likely be challenging, we remain committed to working with the Regulatory Authority to achieve outcomes that are sensitive to customer impact and improve the efficiency and effectiveness of our electric system.”

“The new retail tariffs [base electricity rates] will be implemented 1 June 2021. Further information will be provided in due course.”

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Comments (3)

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  1. A Bridge to Sell You says:

    Revenue deferral is just another way of saying BELCO did not collect enough revenue to receive it’s RA approved reasonable rate of return for invested capital. They don’t have all those expensive executives and board left at BELCO anymore. They all (mostly) got paid out so costs must be going down now and we the people benefit.

    Utilities make money from investing in new assets. So
    Revenue Required = Fuel + Labour + Depreciation + Tax + (Rate of Return)

    Fuel is passed through. Labour is already reduced to non-Bermudians replacing Bermudians. Less sales means rates must go up eventually unless Algonquin wants to absorb a lower return.

    So bigger question is how long is the deferral and what will be the changes to recover the rate of return required later?

    Ticking clock. Caines, your bosses up North will want a win soon. Better hurry up and buy the Dept of Energy’s failed solar project at the Finger and become the hero.

    • Jon says:

      Why is the Department of Energy’s solar project at the Finger “failed”?

  2. Kathy says:

    “BELCO is sensitive to the needs of the Bermudian population – both residents and businesses alike.”

    Why is there inaction on fixing the URGENT problem with people suffering desperately in the immediate surrounding area of BELCO from air pollution (people having to keep their doors and windows closed and not being able to let thier childre play outside)?

    Your inactions now are determining your level of negligence later and we are all taking notes! ACT NOW to install the additional 2 crowns IMMEDIATELY, which you promised at your last forum would have a positive reduction on the devastating pollution landing on the patios, roofs and in the tanks and in the air we breathe of the houses surrounding BELCO.

    We are asking you to ACT NOW!

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