Fuel Adjustment Rate Increases Effective July 1
[Updated] The Regulatory Authority has increased the Fuel Adjustment Rate on electricity bills from 13.784 cents per kWh to 14.226 cents, and “for the average residential customer, the new rate adds about $2.17 to the monthly bill.”
A Government spokesperson said, “The Regulatory Authority of Bermuda has set the Fuel Adjustment Rate on electricity bills at 14.226 cents per kWh, effective 1 July 2026. The previous rate was 13.784 cents per kWh.
“For the average residential customer, the new rate adds about $2.17 to the monthly bill, an increase of about 1.00%.
“The increase would have been far steeper without Government fuel duty relief. Without that relief, the Fuel Adjustment Rate would stand at roughly 16.46 cents per kWh. The relief holds about 2.19 cents per kWh off the fuel component that households would otherwise carry, and absorbs the larger part of the underlying cost increase.
“The increase reflects higher international fuel prices over the past quarter, driven by volatility in global energy markets. The adjustment carries no change to BELCO’s base rates or regulated returns.
“The Fuel Adjustment Rate passes the cost of fuel straight through to customers. It rises and falls with the actual cost of fuel, so bills follow what fuel costs at the time. BELCO revised its filing after updated analysis captured a recent downward movement in global fuel prices. The revision lowered the proposed increase from about 5.97% to about 3.21%.”
Minister of Home Affairs Alexa Lightbourne said, “I know what a rising power bill means in a Bermudian home. Global fuel prices rose this quarter, and the Government chose to stand between that increase and the family bill because we want to protect Bermudians during times of global instability. A cost that would have reached 16.46 cents now sits at 14.226 cents, because the Government stepped in. We will keep this protection in place and keep watching every cent to help those we serve.”
Update 2.45pm: A spokesperson said, “Bermuda Electric Light Company Limited [BELCO] confirms that the Fuel Adjustment Rate [FAR] has increased from 13.784 cents per kilowatt-hour to 14.226 cents per kWh, effective 1 July 2026, following approval by the Regulatory Authority of Bermuda.
“The FAR reflects the cost to purchase, ship and deliver fuel to BELCO’s central plant. It is calculated quarterly and the cost is directly linked to the global price of fuel. The mechanism is revenue and earnings neutral. BELCO does not profit on the fuel component of the bill, the full cost is passed through to customers with no markup.
“The increase is driven by higher global oil prices this quarter.”
Wayne Caines, BELCO President, said, “Fuel costs are set by global markets, not by BELCO, and this quarter they rose. We know any increase affects the household budget, and we encourage customers to visit belco.bm for tips on managing consumption and reducing their monthly bill.”
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We never get a break! When will enough be enough?
You must have missed the drop in the fuel price in April, during the middle of the war!
None of these entities and I mean none care about the average citizen of this place!!! It’s all about the money, this whole planet sucks it’s about time us average citizens wake the hell up!!!
and it continues, everything keeps getting more and more expensive. this is absurd. why do we put up with Belco? why arent we moving towards green energy? i know the answer but when will enough people realize this and stop supporting this terrible government and band together to make change?
Oil prices are going back down! What is the real reason this increase was approved???
Boom!!! there it is.
Look how long the queue is at digismell with one customer rep on duty….says everything about there selfishness and greed