BELCO Fuel Adjustment Rate Set To Decrease
BELCO has announced that the Fuel Adjustment Rate [FAR] will decrease effective tomorrow [April 1].
A spokesperson said, “Bermuda Electric Light Company Limited [BELCO] today advised that following approval by the Regulatory Authority of Bermuda, the Fuel Adjustment Rate will decrease effective April 1, 2026.
“As of April 1, the FAR will decrease from 13.799 cents per kilowatt-hour for the period January 1 to March 31, 2026, to 13.784 cents per kilowatt-hour for the period April 1 to June 30, 2026. This reduction is driven by BELCO’s fuel procurement strategy, which has allowed the company to offset a portion of the current rise in global oil prices and the elimination of the government tax on fuel in the 2026/27 Budget.
“To manage fuel price volatility, BELCO systematically purchases a meaningful portion of its future fuel needs at fixed prices, timed to coincide with expected deliveries. These fixed-price fuel contracts are central to BELCO’s rate stabilisation efforts and provide customers with real protection from market volatility. When oil prices spike sharply, as they have in recent weeks due to the conflict in the Middle East, the impact on customer bills is cushioned and delayed rather than immediate.”
BELCO President Wayne Caines said, “Keeping energy costs as affordable as possible for our customers is a priority, and reducing the FAR is one part of that broader commitment. The FAR is a pass-through rate and BELCO recovers what it spends on fuel and nothing more, so our focus is on managing what we can control, which is how and when we purchase that fuel.
“Our procurement strategy is designed specifically to protect customers from the kind of sharp price movements we are seeing in global oil markets right now, and it is working. We are also pleased that the government’s decision to eliminate the fuel tax has provided further relief. We will continue to do everything we can to keep the FAR as stable as possible for our customers.”
The spokesperson said, “BELCO customers can learn more about the FAR and ways to reduce their bill at belco.bm.”
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