Stakeholders To Cooperate To Reduce The FAR
Representatives from the Government, Regulatory Authority, BELCO, and SOL Petroleum held a meeting to “address the pressing issue of the significant increase in the Fuel Adjustment Rate [FAR]” and “all of the stakeholders at the table agreed to cooperate to reduce the FAR in the immediate future.”
A Government spokesperson said, “On Thursday, October 19, 2023, the Honorable Minister Walter Roban held a meeting with key representatives from the Ministry of Home Affairs, the Ministry of Finance, the Regulatory Authority, BELCO, and SOL Petroleum to address the pressing issue of the significant increase in the Fuel Adjustment Rate [FAR]. This rate increase has had substantial implications for the general public.
“All of the stakeholders at the table agreed to cooperate to reduce the FAR in the immediate future. Recognising the ongoing global events driving an upward trend in fossil fuel prices, the stakeholders have also agreed to change the process and methodology for calculating the FAR. This change aims to provide a more sustainable approach to addressing the volatility in fossil fuel prices in the long term.”
Minister Roban stressed, “Ultimately, any decision regulating the cost of energy must have the best interests of the public consumer in mind. Following this meeting and agreement, I am satisfied that we can avoid costly litigation related to the recent increase.”
The Government added, “The public will soon be advised of the changes to the FAR, which will reduce the recent increase in consumers’ energy bills.”
Minister Roban concluded, “The Ministry of Home Affairs will continue directing policy and giving general direction as prescribed by The Regulatory Authority Act 2011, which includes remaining committed to finding responsible and sustainable energy solutions that will best serve the interests of both businesses and residents in the long term. This includes the Ministry’s commitment to follow the principles and guidelines established under the Regulatory Authority Act 2011. “
Give us an offshore wind farm – NOT!
So how much will this cooperation cost me in “tomorrow’s future”?
My bill went down this month. I hope there isn’t “cooperation” to increase my rates when my usage actually goes up.
Clearly the changes to be made to FAR shows the basis for the calculation was incorrect. How much have customers been overcharged since FAR was set up? Why is it so difficult? The price should be based on whatever Belco pays for its oil shipment when the supply needs replenishing, not some apparently convoluted and secret formula based on the estimate price of oil (plus?) for the next 3 months.
1. So keep inflated prices for longer so smooth out the volatility so we don’t notice spikes…nor dips (if they exist).
2. ??????WHAT ABOUT SOLAR???????? THE BUYBACK RATE HAS BEEN CUT IN HALF! ALL WHILE ITS POWER IS LITERALLY WORTH MORE!!!!!!!
Good news. Next supermarkets and rental properties
How about a rebate on what we have overpaid as the changes to be made to FAR confirms the basis for the calculation was incorrect.
The PLP clearly were well aware of this, why have the PLP left us paying this for so long !!!!!!!!
Why weren’t these discussions held before the increase was announced to the public? Strategic political move on behalf of our government perhaps? Look at us save the day with BELCO increases…. and maybe everyone will forget about everything else we haven’t been doing….we see you.
OK, so my BELCO Bill when normally received during the last week of every Month, has still not been received for September! Now, October’s Bill is due NOW! WHAT IS GOING ON? Something is very shady behind the Scenes.
You Don’t pay a bill without a receipt for goods or services. Online Bills are easy and quick.
This looks like it was planned ahead of time. Something DISHONEST IS GOING ON!
Also, What Transparency have the Public gotten from RA, Belco or the Government? Only that our rates are through the roof now? What about the Calculations? EXPLANATIONS Please.
No doubt mega pressure on Government from Gencom which might explain the silence about the SDO. 20% hike in electricity cost has probably caused serious doubts about the financing and viability for refurbishment of the SP.
“20% hike in electricity cost”
Where did that figure come from?
Going to be interesting to see how much of the tax the government will be willing to give up in proportion to what the other stakeholders will be giving up.
Do the math. BELCO — a subsidiary of Canada’s Algonquin Power & Utilities
NYSE
May 10 – $8.94 per share
May 25 – $5.05 per share
down $3.89 a share, down 43.51% in 15 days.
If only Bermuda had an offshore wind farm! (sarcasm)