BELCO Fuel Adjustment Rate To Increase In April
[Updated] The Ministry of Home Affairs was notified “of an intended increase in the BELCO Fuel Adjustment Rate [FAR]” and said this “adjustment will result in an average $14.00 increase in residents’ monthly electricity bills.”
A Government spokesperson said, “The Ministry of Home Affairs was notified on Friday March 21st of an intended increase in the BELCO Fuel Adjustment Rate [FAR].
“Effective April 1, 2025, the FAR will rise from 13.360 cents per kilowatt-hour [kWh] to 15.515 cents per kWh.
“This adjustment will result in an average $14.00 increase in residents’ monthly electricity bills.
“While the base rate for electricity services remains unchanged, the increase to the FAR is attributed to fluctuating global fuel market conditions reviewed quarterly by the Regulatory Authority following application from BELCO [the utility].”
“This increase in the FAR comes at a time when Bermuda’s families are already enduring the weight of economic hardship and are challenged by their monthly electricity bills,” Minister Lightbourne said.
“The Government announced in its Throne Speech that it will lower the costs of living for its residents, and one week later, received notice by a community stakeholder that it intends to increase its costs. We believe in transparency and wanted to inform the public.”
Minister Lightbourne concluded, “BELCO’s decision to apply for, and implement this adjustment is part of their standard business practices. In order for the Government to be successful in its mandate, we invite the business community to do its part to also promote fairness and relief to serve the betterment of all who live and work in Bermuda.”
Update March 24, 4.00pm: A spokesperson said, “Bermuda Electric Light Company Limited [BELCO] today advised that beginning 1 April 2025 there will be an increase in the Fuel Adjustment Rate [FAR].
“With the approval of the Bermuda Regulatory Authority, the FAR will increase from the existing rate of 13.360 cents per kilowatt-hour [kWh] to 15.515 cents per kWh. The FAR is comprised of 13.637 cents per kWh FAR and 1.878 cents per kWh Government tax on fuel.
“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 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.
“The breakdown of the new tariffs can be found on BELCO’s website at belco.bm.
“For a low-usage residential household whose consumption is 200-kilowatt hours per meter reading cycle, there will be an increase of approximately $4.31 to a monthly bill [after discount].
“For the average residential household whose consumption is 650-kilowatt hours per meter reading cycle, where the majority of Bermuda residential customers fall, there will be an increase of approximately $14.01 to a monthly bill [after discount].
“For a high-usage residential household whose consumption is 1,500-kilowatt hours per
meter reading cycle, there will be an increase of approximately $32.33 to a monthly bill [after discount].”
BELCO President Wayne Caines said, “We understand that any increase in electricity costs impacts our customers. This adjustment reflects the global reality of fluctuating fuel prices that are beyond our control. We want to assure our customers that BELCO remains committed to exploring energy solutions that will help stabilize costs in the long term. In the meantime, we encourage customers to visit our website for energy-saving tips that can help manage consumption and reduce monthly bills.”
The spokesperson said, “BELCO customers can learn more about their bill as well as tips on energy efficiency and ways to reduce their bill at belco.bm.”
Read More About
Category: All, Business, News, technology
So the first day back in the house the PLP give themselves raises and now increase fuel rates so BELCO bills will be higher. People have been saying the PLP isn’t good for Bermuda, but still you voted them back in.
Like mother’s always say…If you don’t listen, you will feel. And Bermuda will surely feel the affects of another 4 years with the PLP.
“So the first day back in the house the PLP give themselves raises and now increase fuel rates”
Yes, the PLP gave all members and officers of the legislature a pay increase that is DOUBLE the reported rate of inflation, but the PLP did not increase fuel rates.
The application to increase fuel rates came from BELCO, not the PLP Government.
Gov approves rate increases.
Exactly. Gov can say NO to increases as they have before!
They gave thenmselves a raise? Why do they feel they have earned it? What is better today than it was 4 years ago?
I’m waiting for the OBA to object on the raise since it was their members that sat on the committee that push for it.
“I’m waiting for the OBA to object on the raise since it was their members that sat on the committee that push for it.”
Are you suggesting that BELCO is part of the OBA?
As the article says, the application for a rate increase is “following application from BELCO”.
Who is at the TOP of the BELCO ladder again? Ummm ya nice try at deflection there.
The OBA and PLP all received paycheck raises. They all working together and laughing at us.
Fuel Adjustment Rate going from 13.360 to 15.525 c / kWh or +16%
Meanwhile crude oil and more directly diesel prices are near multi year lows.
So once again BELCO is either mismanaging hedging their fuel costs or are maximizing profits off Bermudans or both.
Meanwhile Minister Lightbourne is saying “we invite the business community to do its part to also promote fairness and relief to serve the betterment of all who live and work in Bermuda.” ???
Why? The cost of a barrel of oil has dropped to around $70, and they buy heavy oil which is the cheapest. Have they ever heard of hedging, or buying forward when the price is low? Where is the PLP regarding this, when they boast about tackling the high cost of living. Reduce the tax, or provide a subsidy like they did for gasoline.
Only a $14.00 increase? That is the equivalent of a cup of coffee and a pastry without leaving a tip. Time to cut back again.
AGAIN!!!!! When do WE THE PEOPLE get a BREAK!!!!!!!Yet our government says nothing and give themselves a RAISE?????? This is NONSENSE!!!!!!
THey do lots….everything is wonderful for the people. Have you not seen the commercials. Lots of smiling and hugging and talk of increasing pensions for seniors.
Arrybodies bullshiddin!!!!BELCO, RA and GUMMINT!!!!!!!
Call us the Ben Dovers, when will this nonsense end? BELCO GREED, oil prices have dropped NOT INCREASED. We should all plug in our generators and use our own power and boycott BELCO, lets see how they like those apples.
Oil prices are at their lowest in years. When are Belco rates going to reduce?
Oil prices may be low, but the world’s economy has been thrown into chaos.
Bill Ackman, a Wall Street financier, called President Trump’s economic policy an “economic nuclear winter”!
Ackman should run for president. Oh, wait. He has no interest.
“The country is 100% behind the president on fixing a global system of tariffs that has disadvantaged the country. But, business is a confidence game and confidence depends on trust,” he began his X post. “President Donald Trump has elevated the tariff issue to the most important geopolitical issue in the world, and he has gotten everyone’s attention. So far, so good. And yes, other nations have taken advantage of the U.S. by protecting their home industries at the expense of millions of our jobs and economic growth in our country.”
Interesting. “More than 50 countries have reached out to the U.S. for tariff negotiations following the announcement of new tariffs by President Trump. This includes both allies and adversaries, as nations seek to address the economic impact of the tariffs.” Go figure!
Could it be that since President Trump has the biggest stick in the world, the US economy, he is using that stick to America’s advantage like no other president? He clearly laid out the case for the tariffs.
Hmmmm.
- FT LONDON, April 8th. /tass/. The total volume of investment commitments by private and foreign companies to place capital in the US economy has reached $1.9 trillion since the beginning of Donald Trump’s presidential term. This assessment was given by the Financial Times newspaper.
According to the publication, among the largest announced investments are $500 billion from Apple, $100 billion from SoftBank telecommunications holding, a similar amount from semiconductor manufacturer TSMC, $20 billion from shipping group CMA CGM and $5 billion from automaker Stellantis.
- General Motors, Nissan to boost production at US plants due to Trump tariffs
It looks like being a pro-American president is working.
Whether President Trump’s plan will work remains to be seen.
The last time the United States adopted such a position was at the end of 1929. it lasted a decade and it was called the “New Deal”.
OH NO! 50 countries were brought to the negotiating table in one week. ONE WEEK! Now the count is up to 70! I guess that “remains to be seen.” COME ON! Did that happen in the New Deal in ONE WEEK?
As I recall from my American History class, the New Deal and the Second New Deal actually prolonged the Great Depression. WWII stimulated the American economy because FDR’s socialist policies did not work as quickly (if at all) as anticipated.
Forbes April 8, 2025:
Crucial Quote
“Virtually every country wants to negotiate” with the U.S. over tariffs, Trump told reporters Monday, claiming foreign countries are “offering things to us that we wouldn’t have even thought of asking them for.” – US Treasury Secretary Scott Bessen
European Union: European Commission President Ursula von der Leyen said Monday that Europe has offered Trump “zero-for-zero” tariffs on industrial goods in an effort to relieve the 20% tariffs Trump imposed on the bloc, saying the EU is “always ready for a good deal.” Trump suggested he was unlikely to take that deal, however, telling reporters Monday if that was a good enough offer for him, “No it’s not. The EU has been very tough over the years.” The EU is also reportedly readying 25% retaliatory tariffs on some U.S. imports that will take effect starting April 15 without a deal.
United Kingdom: British officials believe they could reach a deal to remove or reduce Trump’s 10% tariffs on the U.K. “within weeks,” according to The Washington Post, as the government has already been in negotiations with the Trump administration, offering to lower tariffs on U.S. goods and preparing to offer a lower tax rate for American companies in the U.K.
India: Indian officials have suggested they’re likely to try and negotiate with Trump rather than impose any major retaliatory moves, with an unnamed official telling Bloomberg the country is “seeking dialogue and not confrontation.”
And the list goes on…..
Sorry, Hilarious, but your “Crucial Quote” is what “Trump told reporters Monday” (as quoted by Forbes). Please forgive me is I do not accept anything Trump says as true without proof.
As for your American History class teaching you that “the New Deal and the Second New Deal actually prolonged the Great Depression”, that is a political view, not an economic or socio-economic analysis. The New Deal and American isolationism during the 1930s allowed the American economy to recover more rapidly than would otherwise have been the case, but it also gave licence for Hitler (Putin) to invade its neighbours, and it emboldened Japan (China) to believe it could attack American territory without serious consequences.
As for your view that “WWII stimulated the American economy”, that is correct. But at a cost. War economies necessarily rely on issuing debt. American industry grew because the American government issued debt to buy material for war. The phrase of the day was “Bye bye and buy bonds”.
I believe President Trump was quoted by US Treasury Secretary Scott Bessen, which is how it was written and how I read it. If not, get over it. I am sure President Trump does not trust anything you say without proof (or even care). Who are you again? The President of the USA vs Joe Bloggs. Hmmm. Who are you?
Do tell me where you took your American History class.
Do tell me where you believe the money came from to fund the New Deal & Second New Deal? FYI, during the New Deal my father left home to plant trees for, I believe, $0.25 cents a day. My parents lived through the Great Depression.
It is a fact that FDR’s policies delayed the recovery.
The 22nd Amendment was passed to limit a president to two terms, or ten years, in the case of a vice president who became president during a term, with destructive policies like FDR’s. American media often overlook this point because FDR’s policies were failures but he was a Democrat.
Notably, your comments do not acknowledge that President Trump’s strategy quickly brought countries to the table to renegotiate tariffs. Go figure! Come on, say his name—TRUMP! One more time, say it—TRUMP!
According to GlobalPetrolPrices, in December 2024, Bermuda had the highest electricity price in the world! YEAH! Bermuda is #1 at something!