BELCO: Fuel Adjustment Rate To Increase

October 1, 2023 | 28 Comments

BELCO advised that beginning October 1st, 2023 there will be an increase in the Fuel Adjustment Rate [FAR].

A spokesperson said, “With the approval of the Bermuda Regulatory Authority, the FAR will increase from the existing rate of 16.513 cents per kilowatt-hour [kWh] to 24.517 cents per kWh. The FAR is comprised of 20.09 cents per kWh FAR and 4.427 cents per kWh Government tax on fuel.

“This increase of 48.5% relative to the third quarter of 2023 is primarily the result of the mix of fuel necessary to meet demand in light of current and projected engine availability for the quarter.

“The FAR reflects the total cost to deliver fuel to the BELCO central plant and is comprised of two parts – the fuel adjustment and Bermuda Government taxes. The fuel adjustment is based on the total cost of purchasing fuel and includes shipping costs.

“The second part of the FAR is comprised of two separate Government taxes. Currently the Government charges $31.79 per barrel of fuel in addition to a tax of $0.40 per barrel of fuel which provides funding for the St. George’s UNESCO World Heritage Site.

“The FAR is calculated quarterly and rises and falls as the purchase price of BELCO’s fuel rises and falls. The FAR is a cost recovery mechanism and both revenue and earnings neutral as 100% of the cost and any savings due to a reduction in BELCO fuel costs are passed on to customers.”

BELCO President Wayne Caines said: “It is not lost on us that this most recent FAR increase is significant. The cost of fuel is determined by the market, and the FAR is largely driven by the cost of that fuel used to generate electricity.

“The FAR is revenue neutral and BELCO makes no extra earnings from this increase. The Regulatory Authority holds us accountable and ensures that our costs are efficiently incurred. Customers can visit our website where they can find many helpful tips on energy efficiency steps they can take to reduce their bills.”

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Comments (28)

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  1. Weldon Wade says:

    Well. I am now that guy that turns his hot water heaters off at the breakers until I replace them with those instant-heat panels. Winter is coming.

    • Real Deal says:

      well i am that guy that don’t use hot water anymore so let it come been ready

    • Hilarious! says:

      Just have a licensed electrician install a timer for your hot water heater. Far less expensive and our timer installation paid for itself in about 4 to 5 months. Probably less time now with the higher electric rate. Ours works great. Comes on at 6AM and 6PM. Set to your schedule.

      • Toodle-oo says:

        On the recommendations of the BELCO lines crew 40 years ago I started only turning the water heater on an hour or so before needed and then off again.
        My back of a napkin calculations show a total savings of about $16,000 so far !

      • hey says:

        Does it allow sediment to settle on the bottom of the tank and reduce the life expectancy of the tank by doing this. Just asking

  2. And… says:

    What % of this goes to the bloated salary’s of the RA? All I see is the RA hiring and no value to the public…

    • trufth says:

      Yea, exactly! What am I getting for my nearly 50% increase?
      Am I getting 50% better customer service?
      Am I getting 50% more fuel?
      Am I getting 50% less outages?

  3. Ringmaster says:

    If Burt can control the price of gasoline at the pumps since January, then he can control the price for BELCO’s fuel. Also why the large increase? Don’t they have a department to buy forward rather than spot? BELCO burns heavy oil which is much cheaper than light oil, in fact there is a very limited market. Have they switched to light to reduce the emissions? If not there will be another increase coming.

  4. Question says:

    Don’t worry. I’m sure the Government will announce in a couple of weeks that our inflation rate is still only 3%.

  5. Platinum says:

    Would love to see what would happen if we all just said NO!

    Rates continue to go up but if someone in the neighbourhood sneezes, the power goes out.

    What are we paying for? The service and infrastructure are mediocre at best.

    What a rotten company with horrible owners.

    • Too passive says:

      Well my thoughts exactly! But there’s one problem. I’m planning to leave this weak country that doesn’t know how to fight for anything! A people that just lays down and take it up the ass! Spoiled and passive. All talk and no action! and the powers to be know it! There aren’t enough of us anymore ro really do anything about it . The “have’s” don’t care anymore! Afraid to sacrifice anything that they have! Spoiled!! Bermuda accept your fait . Cause I’m out if here! You can keep it!

  6. Hilarious! says:

    Now factor this into the Estimated Consumer kWh Rate (ECkR) cost range (that the RA & Greenrock refuse to disclose) that will be delivered to consumers and businesses by BECLO purchasing offshore wind-generated electricity. Bermuda gets bragging rights to the #1 highest electric rate in the world! YEAH! We beat out green Germany and green Denmark big time! #1 #1 #1

  7. hair says:

    Back to candles and flashlights. lol

  8. Goose says:

    Why is the Government letting Altonquin subsidise foreign losses by hiking up Bermuda’s electicity prices.

  9. Marine Life says:

    The Amount of Power Outages per year continues to go up ever since Algonquin took over BELCO. That last storm we got, the wind only sustained at or near 60 MPH. We lost power for 10-12 Hours. Some areas much longer. Five years ago, we could get through a Category 1 or 2 Hurricane and surprisingly never lost our Power.
    So yes, what kind of foolishness are we paying for?!
    Other Jurisdictions rarely lose their power. Bermuda continues to Spiral Downward in Quality of Life.

  10. SMH! says:

    It is my hope, wish and dream that it does not get approved. But we all know who’s in bed with who.

  11. I'm just saying says:

    What’s the sense of looking for approval when they are just gonna approve it anyway?

  12. Paid off government says:

    Other countries would burn their country to the ground rather than accept this BS. But not Bermuda ! Passive!!

  13. Maddog says:

    MANY MANY folks cannot afford electricity now. They are having to choose between food and electricity. this significantly impacts seniors who absolutely cannot afford an increase. Who is looking out for them? WHAT IS HAPPENING HERE? I was away for 2 weeks and had 2 outages and STILL my bill was very much the SAME. Something is not right and no one in positions of power are doing anything about it. Another reason that my retirement plan means I am forced to leave my home and go overseas just so that I can live. I have always worked hard, paid my taxes, saved my money, followed the law and given back to the community through significant volunteer hours. I have done everything I am supposed to do. And I am being forced out because I cannot afford to retire here. It disgusts me.

  14. No name says:

    Ready for the crime rate to go up remember this comment

  15. ella says:

    This just irks me to the core!! As of today, I will be unplugging everything, especially the water heaters in my house before I leave home. Let’s see in a week if this will make a difference.

  16. Richard X Rich says:

    I’m so glad I got that $100,000 bonus this year and my IB employer pays my Belco bill and gives me a housing allowance and car ;)

    I only wish!!

  17. Joe Bloggs says:

    The trustees of the Bermuda National Sports Centre are clearly frightened. The field lights were not left on all night last night!

    • Joe Bloggs says:

      And now things are back to normal.

      The field lights at the Bermuda National Sports Centre were again left on all night last night

  18. Reggie Horseman says:

    Amazing how the fuel surcharge is higher now with oil being under $100.00 a barrel then it was when the price of oil was over $200.00 a barrel during the Gulf War.
    Help me to understand this.

    • Joe Bloggs says:

      I cannot find where oil has ever been over US$200 per barrel in my lifetime, but the first Gulf War was 1990 to 1991 and everything was a lot cheaper 32-33 years ago. The second Gulf war was 2003 to 2011 or thereabouts and again, everything was cheaper a decade ago.

      It is also worth noting that Fuel Adjustment Charge is only part of your Belco bill, there are also consumption charges that have nothing to do with the price of fuel.

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