OBA: Legislate Reduction In BELCO FAR Increase

October 22, 2023 | 5 Comments

It is “unacceptable for the current Government to do nothing and point fingers at BELCO and the Regulatory Authority as prices skyrocket,” Opposition Leader Jarion Richardson said, adding that the Premier should “recall Parliament to legislate a reduction in the BELCO FAR increase.


BELCO previously said, “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.

“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.”

There has been concern expressed about the impact of this increase, both on households and businesses, and people have gathered outside of BELCO to express their concern.

Minister of Home Affairs Walter Roban has stated that “legal action must be considered to address this decision. This increase is not in the public’s best interests, and this decision does nothing but cause hardship.”

OBA Statement

Mr Richardson said, “In these times of unprecedented hardship for everyday Bermudians, it is unacceptable for the current Government to do nothing and point fingers at BELCO and the Regulatory Authority as prices skyrocket.

“Principled leadership requires delivering solutions. Everyday Bermudians deserve principled leadership. In September, the PLP recalled Parliament for a special sitting to deal with, among other things, classic cars. The BELCO fuel increase is far more urgent.

“The time is now for Premier Burt to recall Parliament to legislate a reduction in the BELCO FAR increase. The OBA will support the PLP to enact this solution.

“And the Government should use this opportunity to immediately meet with BELCO and negotiate an outcome that considers the current economic hardship impacting all Bermudians.

“Let’s stop with the blame game and get this done,” Mr Richardson concluded.

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Comments (5)

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  1. Lion Paw says:

    BELCO states FAR = Total Cost of (Purchase + Delivery) Fuel to Central plant comprising of 2 parts (Fuel & Taxes) on fuel.

    Which is then calculated by the Regulator every (3 months)
    These are facts. Question becomes, where is your solution??

    Also you do realise you have added to the blame game list don’t you

  2. Clear View says:

    Maybe BELCO should just not buy fuel. I wonder what happens then?

  3. Ringmaster says:

    What is so noticeable is that Burt made a big issue about holding down the price of gas for motorists, but is totally silent and absent about Belco’s fuel increase. Gas is held down by a reduction, or subsidy on tax, so why not for Belco which impacts all of Bermuda? World prices impact both, so why no reduction on Belco’s tax? Is there embarrassing behind the redacted information the public shouldn’t see?

  4. Hilarious! says:

    blah, blah, blah. But we be gettin’dem offshore wind turbines. Just ask Greenrock and the RA what the rate will be from those gems. They will save us!
    (yes, sarcasm)

    Folks, this rate increase is nothing compared to our rate IF we get an offshore wind farm. Why do you think the consultants hired by Greenrock and the RA will not tell us the Estimated Consumer kWh Rate (ECkR) cost range that will be delivered to consumers and businesses by BECLO purchasing wind-generated electricity?

    Why do you think Greenrock and the RA will not release any cost spreadsheets used by the consultants for the public to examine?

    • Ringmaster says:

      Agree totally. Sounds great “the wind blows so the electricity must be free”.
      As dumb as the proposed 2,600 mile cable from Morocco to the UK. Cost of that alone is 20-22 million pounds so at least 50% more, all of which has to be paid for.

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