BELCO On ‘Misconceptions’ About FAR Increase

October 5, 2023 | 24 Comments

Since announcing there would be an increase in the Fuel Adjustment Rate [FAR] “there have been several misconceptions and incorrect information circulating,” the BELCO President said, adding that “customers’ bills are not increasing by 48%, only a portion of the bill will increase, the base rate and other charges will remain the same.”

BELCO President Wayne Caines said, “Since announcing there would be an increase in the Fuel Adjustment Rate [FAR] from October 1st, there have been several misconceptions and incorrect information circulating in the community. I wish to address these rumours and misconceptions and clarify what the increase in the FAR means for our customers.

“To be clear, customers’ bills are not increasing by 48%. Only a portion of the bill will increase. The base rate and other charges will remain the same and only the FAR will increase. The FAR is the total cost of purchasing and delivering fuel to BELCO’s central plant and is comprised of two parts – the fuel and taxes on fuel. The FAR is calculated and approved by the Regulator every 3 months and rises and falls with the global price of fuel.

“BELCO does not make any profit on the increase in the FAR as the rate is only associated with the costs associated with the fuel and taxes on fuel. It’s this portion and only this portion of customers’ bills that will increase. It is not a 48% increase on your total bill. It’s a 48% increase associated with the FAR only.

“As an example – for the average household it equates to an approximately $52 increase in your bill. For the average household, if your bill was approximately $280, with this increase, the bill will now be approximately $330.

“At BELCO we understand that any increase is significant. However, it is important to know the facts and not be misled by false information that is circulating in the community. If customers have any questions or concerns, they can contact BELCO’s Customers Experience Team on 299 2800.”

Graphics via BELCO:



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Comments (24)

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  1. Ringmaster says:

    So Caines makes out it’s only a 20% increase in the bill so it’s is OK and people should understand? BS. Explain in detail why the increase in fuel costs. Include when was it bought at at what price; heavy oil or light or a mixture; is there a hedging mechanism in place or future buying; buy spot or actually plan and buy when market is down? Seems Belco buys on a whim and at the high spot price. If they bought last week, the market oil price has already fallen 12%. The RA is a joke, they’re supposed to work for the customer, not Belco.

    • Ringmaster says:

      I missed this bit: “The FAR is calculated and approved by the Regulator every 3 months and rises and falls with the global price of fuel”. This makes no sense at all. FAR should be based on the price Belco pays when it buys the fuel, not the global price. IF they just bought six months worth at say $70 per barrel, but after the price moves up to $85 this should have no effect on Belco. They have stock based on $70. The price might fall to $65 when they buy again but based on what they say FAR would have been increased, meaning a large profit.

  2. rob says:

    Belco example is a $52.00 increase, OMG seriously? Mine will be over $100. This is robbery.

    • Hey says:

      12 months at $52.20 = $626.40 a year extra annual electricity cost !!!!

      This is wrong.

      PLP making you poorer each and every day.

  3. Mumbojumbo says:

    52 dollars ….why did govt allow this…govt has no direct involvement…rubbish here is their minister talking who-jock t’villy right here so think for yourselves sheaple…wake up people arise…

  4. lizard says:

    Does anyone believe the Govt. or Belco that 100% that is charged for FAR is justified by the supposed increase? If Caines is quick to defend the increase show us the figures. Let an independant group (audit firm) corrolate the figures not “wanna bees” at the RA.

  5. Mr. P. Meoff says:

    Mr. Caines,
    We the Bermudian public take great issue with the proposed hike in the fuel adjustment rate.
    After your Companies owners tried to bypass the RA by installing your new engines to run on an unapproved (by the RA) fuel source (LPG), your owners were then forced to go back to burning HFO or heavy fuel oil. By doing that, and not having the proper equipment to clean up your exhaust fallout on your new chimney’s, which, by the way were also designed to except LPG exhaust, BELCO caused its neighbours and surrounding homes much grief and concern with the fallout of soot and heavy metals. In order to rid yourselves of this annoyance, Belco then decides to burn diesel fuel which is much cleaner than HFO but is twice as expensive in order to end your polution issue.
    The real facts are:
    Your owners caused this mess by not going through the right channels and they should bourne the cost of burning diesel fuel, it’s wrong and unjust to throw it onto the consumer to pink up for your mistakes. We are already struggling with the fuel adjustment making up almost 50% of our bill. Liberty and Alagoquin should think and consult before they move. The Bermudian people will not stand for it.

  6. Tits Magee says:

    Sorry …can’t afford that…just understand this.

  7. question says:

    When the oil price goes down, that’s ‘all because of Burt’.

    When it goes up, that’s ‘totally nothing to do with Burt’.

  8. Bill says:

    First you say it is , then you say it isn’t …so…aww you sthupit or aww you thtupit…which one it it ?
    52 Dallas is 52 dollars we have issues buying groceries fool.

  9. Mr. Speaker says:

    I have a one bedroom cottage my bill is over 400 dollars a month…Belcourt is stealing my food money now !!!!!!

  10. Platinum says:

    Thank you, Wayne, for delivering this message in a pair of eyeglass frames that cost as much as some of our monthly BELCO bills. I’m sure this will put many of us at ease.

    The divide continues to grow in Bermuda between the priviledged, like Wayne, and the the average Bermudian.

    Rotten company. Rotten owners. Rotten executives.

  11. Weldon Wade says:

    Well. I am now that guy that turns off his hot water heaters at the breakers until those instant heat panels come, already took my spare deep freezer offline, reduced use of air conditioning (which is happening anyway due to the decrease in air temperature) and doing a full household energy audit again. All my light bulbs are already LED but that’s insignificant when HVAC is the big one. Eating out and going out less is now a thing. Winter is coming.

  12. Jus' Wonderin' says:

    Caines don’t care about anything all this is just talk. Mans getting rich off of our dimes and couldn’t care such jokes!

    The average is still $50 up for many people that’s a lot in these days smfh…

  13. Marie smith says:

    Ok so he can pay my bill since he thinks it’s justified, I can’t afford to barely get myself food let alone have a 52$ increase on my already ridiculous bill. I have tried unplugging things using one less ac as it was so hot this summer and why should we be totally uncomfortable in our homes ? I’m sure they are not. There are no excuses for this we can not afford anymore increases if our wages do not increase. this is what people like him are not understanding we are struggling we can’t pay the already high enough belco bills I don’t care what he says this is insane. He isn’t in our shoes he doesn’t understand living pay check to pay check as of now I work multiple jobs until 11pm so I can afford the cost of living which I still can’t fully and for my needs even with a solid job it’s still hard to make ends meet, but they don’t care and neither will I when I start to cut back and save and leave I’m so tired of people wearing blinders and not seeing what is going on. This isn’t home anymore it’s hell all I do is work go home work go home this isn’t living , my friend lives aboard and even with their increases somehow they make ends meet if not better then me way better actually and they aren’t short when they go to pay their bills ironic yeah the day I leave I’ll be jumping for joy.

  14. Truth is killin' me... says:

    Whatever Caines. An increase is an increase, spare me the BS!

  15. Paid off government says:

    We have elected officials sitting on big monopoly energy boards. No wonder we are in this mess!

  16. Mumbojumbo says:

    Ain’t…say it again…ain’t no mis concept at all no black rum and sherry pepper gonna make “that” palletable . Pretty straight forward and to be honest with you I don’t want your reasons or excuses .

  17. Dejavu says:

    There’s zero reason to live in bermuda the cost of living is way to high, no jobs and constant violence. Get out now while you can become it’s only going to get worse

  18. Hilarious! says:

    People, stop complaining and take action.

    1. Have a licensed electrician install a hot water heater timer. We set ours to come on at 6 AM and 6 PM every day for one hour. The water is hot! Paid for itself in a few months. Saving money every day. There is no need to heat your water 24/7. A quick and easy way to cut your electric usage and have some control over the expense.

    2. Remember the party in power for your years of economic misery. Vote according to your wallet in the next election, if it ever comes.

    • Dejavu says:

      You sound worst than Burt lol. Who’s going to pay for all that? The point is we shouldn’t have to

      • Hilarious! says:

        Same place where you get your money to pay for your current electric bill. Cash, credit cards, bartering sea shells…

        Are you some special person where you are above paying for things? Math challenged and cannot do simple math to see savings from spending a little money against the extra $50+ a month expense of doing nothing?

        Remember to vote if there is another election.

  19. Bermudian says:


    Damn crooks

  20. iyiyi says:

    Just going to cause more family’s to leave . Might as well sell the Island to China .
    Al the least we would have a full bus service .

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