BELCO Backs Fuel Tax Removal Proposal

BELCO said they “welcomed the Government of Bermuda’s proposal to eliminate the fuel tax, which would deliver further savings to customers on top of the 10% rate reduction BELCO achieved on January 1st.”

A spokesperson said, “BELCO recognises that electricity is a large component of monthly expenses for Bermuda residents and businesses and continuously reviews its operations to identify savings that can be passed on to customers.

“BELCO has systematically reviewed each cost area under its control:

• Plant & Equipment: Investing in upgrades like the Transmission Upgrade Project that replace aging, expensive to repair cables, and conducting comprehensive reviews of service and maintenance contracts to ensure best value through improved competitive tendering.

• Labour: Voluntary separation and early retirement packages to reduce costs while ensuring long-term sustainability by investing in multi-skilled apprentices who are the future of the company.

• Fuel Purchase: Using hedging strategies and working with suppliers to purchase fuel at the best price and optimal time.

• Technology: Advanced metering and a new customer portal that eliminates the need to send trucks for meter reading and gives customers better tools to manage usage.

“These operational improvements delivered a 10% rate reduction that took effect January 1st, 2026.

“Separately, BELCO has consistently advocated for the elimination of the Government fuel tax since it was implemented in 2015. Through sustained pressure, several reductions were achieved. The Government of Bermuda has now proposed to eliminate completely the fuel tax, which would provide additional relief to customers.”

BELCO President Wayne Caines said, “The 10% rate reduction in January was the result of hard work reviewing every aspect of our operations. For a decade, we have consistently pushed for the elimination of the fuel tax, and that sustained advocacy is now delivering results. The work BELCO has done and continues to do is providing meaningful relief to our customers — and we’re not done. We will keep finding ways to stabilise electricity costs.”

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