BELCO Announces Lower Electricity Rates

[Updated] Operational improvements are being passed on to “our customers through lower base electricity rates which will be seen on your bills in January,” BELCO said today.

BELCO Statement

A spokesperson said, “Bermuda Electric Light Company Limited [BELCO] today advised that following an approvals process by the Regulatory Authority of Bermuda, electricity tariffs will change for all meters read on or after January 1, 2026.

“Base electricity rates will decrease for all meter read after 1 January 2026. The Fuel Adjustment Rate [FAR], which is set quarterly, will remain at 13.799₵ per kilowatt hour in Q1, resulting in lower bills for the customers in the New Year. The breakdown of the new tariffs can be found on BELCO’s website at www.belco.bm.

“For a low-usage residential household whose consumption is 200-kilowatt hours per meter reading cycle, there will be a decrease of approximately -$5.74 to a monthly bill [after the prompt-pay discount].

“For the average residential household whose consumption is 650-kilowatt hours per meter reading cycle, there will be a decrease of approximately -$20.80 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 a decrease of approximately -$68.54 to a monthly bill [after discount].”

BELCO President Wayne Caines said: “Over the past year, we have undertaken a comprehensive review of our operations at BELCO to identify opportunities for greater efficiency and cost savings that benefit our customers. These efforts have enabled us to achieve operational improvements that are being passed on to our customers through lower base electricity rates which will be seen on your bills in January. BELCO remains committed to continually assessing its operations and associated costs, while ensuring that we reliably meet the energy demands of our customers.”

A spokesperson added, “BELCO customers can learn more about their bill as well as tips on energy efficiency and ways to reduce their bill at www.belco.bm.”

Regulatory Authority Statement

A spokesperson said, “The RA has completed its 2026/2027 Retail Tariff Review, confirming that electricity rates will decrease for all customer classes beginning 1 January 2026. Base rates will fall by 10.5 percent, with the average overall retail rate decreasing by approximately 7.6 percent.

“Following an established regulatory methodology, the RA approved an Allowed Revenue of roughly BMD $237 million for 2026, which is approximately $17 million lower than BELCO’s request. This outcome reflects updated cost information, efficiency assessments, and higher-than-forecast electricity sales, all evaluated through the RA’s standard analytical framework.

“An entrenched and thorough methodological process is utilised each year by the RA to ensure that BELCO’s Allowed Revenue reflects the efficient and transparent cost of providing service. The 2026 review follows this approach, resulting in a determination grounded in data, rigorous analysis, and the RA’s commitment to fairness and accountability.

“The full Retail Tariff Review decision, including detailed analysis and bill-impact scenarios, is published on the RA’s website www.ra.bm.”

Government Statement

Update 6.46pm: A Government spokesperson said, “The Ministry of Home Affairs welcomed BELCO’s announcement that base electricity rates will be reduced for all meters read on or after January 1, 2026.

“This means households can look forward to monthly savings ranging from roughly $5.74 to almost $70 on their electricity bills.

The Minister of Home Affairs Alexa Lightbourne said, “Families are under real pressure from cost of living increases. Any reduction in cost of an essential service like electricity is significant, and the Regulatory Authority’s decision will provide meaningful relief for households across the island.”

A Government spokesperson added, “The rate cut complements the Government’s wider affordability drive, including the Affordable Bermuda Basket, a targeted programme delivering discounts on a core list of staple groceries and household essentials through participating retailers. This, coupled with lower electricity bills, helps to ease the pressure where it matters most.”

Minister Lightbourne continued, “The Affordable Bermuda Agenda is about aligning Government policy, regulators and industry partners around one clear goal, lowering the everyday cost burdens for Bermudians. We will continue to work with all our community partners to ensure critical services remain fair, transparent and affordable.”

A Government spokesperson added, “The Government encourages residents to review BELCO’s new tariff schedule and to also take advantage of the Affordable Bermuda Basket.

“Visit www.costofliving.gov.bm for more information on the Basket and the Affordability initiatives under the Affordable Bermuda Agenda.”

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