Utility conservation: The Bermuda Tightwad Gazette Continuing Series

Last week Moneywise started a review of utility costs and what the individual family can do to control them. We need electricity. Yes, we could do without it — in the short term, but most of us lack the temerity to be permanent back-to-the landers, with all due respect to those individuals who embrace living off the grid. We are many generations of peoples since electricity’s invention whose lifestyles and wellbeing are wholly dependent on having “the lights on”. We cannot turn back now.

How that power has enhanced our lives is a topic of amazing ingenuity. Who would have thought that the ordinary light bulb would become obsolescent, replaced by LEDs (light-emitting diodes, read about its discovery) that heats less, shines more, and has a significantly longer shelf life. Or that nuclear reactor power would replace electric light poles; air conditioning for stable living environments; refrigerators / freezers cold enough to keep liquids solid, along with other foods and (in some crime cases) unmentionables. We take for granted this now old technology, until we are deprived of it — even for a few days.

Bermuda’s power plants still burn imported fossil fuels to convert heat to electricity. According to Belco, “an estimated 11.26 barrels of fuel is consumed by the average residential Bermuda household to meet their annual 7,200 kilowatts (600 kWh per month) demand”. Other countries have financial and natural access to more varied accelerants: natural gas, nuclear power, solar farms, wind combine generators and the like.

Our Belco bill is one of, if not the largest, bill we incur every month. We’ll exclude — for now — those with large cellphone bills or homeowner’s mortgage payments.

Electric Consumption Chart. Let’s take a review of an anonymous real household Belco statement for June 23 2015 sorted out in the chart shown on an Excel spreadsheet. You can also do these computations by hand. You can use dependently track your energy charges each month while learning to control them. The chart will be available on the Bermuda Tightwad Gazette.

A total of 1,407 kilowatt hours (kWh) were consumed by this household in this 28 day-billed month — stated at the very top of the bill.

What is your first thought? Wow! More than half of this usage will be charged at the highest rate 29.72 cents per kWh. Further, under the new tiered Graduated Facilities Charge, the average daily kilowatt usage computed facilities fee for the month is placed in Tier 5, the highest position — an increase of $17 over the prior fee of $33. The facilities charge is computed by dividing 1407 kWh / by 28 days in the billing month = $50.25, then assessing the annual rolling daily average. https://belco.bm/index.php/services/graduated-facilities-charge

What should be your second thought? Set a goal to keep your kilowatt usage below that highest third block usage (over 700kWh).

First rule

Check your wattage count. Start on your own by recording your wattage a couple of times a week, so that you will be close or on the date when your next reading is taken. Your number may be a bit off from Belco, but you will be in the ‘ballpark’ if you track your own meter readings regularly and compare them to your bill. In our case, the 1,407kWh is computed by subtracting the difference between the meter reading for the bill date (15,623) and the meter reading for the prior month (14216) = 1407.

Belco informed me that 75 per cent of all meter reading are now electronic; about 25 per cent are still manual, some meter readings are estimated if access is unavailable.

Second rule

The more energy you use, the more it will cost: the first 250 watts costs 15.75 cents each; the second block of 500 watts cost 24 cents each; the third unlimited block costs 29.72 cents each unit, double the cost of the first block. This is the most complicated calculation. You must take the 1,407 kWh used and divide it into the blocks and prices used. In our case:

First block — 250kWh times 15.75 cents = $39.38.

Second block — 450kWh times 24 cents = $108.00.

Third block — the remainder kWh (1,407-700) 707kWh times 29.72 cents = $210.12.

https://belco.bm/images/belcorates2013.jpg

The first block is the cheapest with the second block almost 1.5 times more, and the third block is double the cost. A sobering thought to keep in mind every time you leave all lights, plug-ins, air-conditioning and other appliances on.

Third rule

The Belco facilities charge also increases in tiers for consumers, starting with $15 for the cost-cutter group, and increasing steadily upward to $75 per month for the high-end consumers.

Fourth rule

The fuel adjustment fee is assessed equally across the consumer spectrum. The fee fluctuates by month depending upon oil capital market pricing. 1,407kWh times 11.50 = $161.81

The anonymous household bill tops out at $568.81. Don’t forget the 5 per cent discount savings of $28.44 — easy to do by setting up a direct debit payment plan.

Therefore, what is your ultimate goal?

Reduce your carbon footprint. Will it be work? Oh yes, it will. Here is something to think about. Every time you see a reduction in your utility bill — put that amount into your version of the cookie jar. Now there is a growing Rainy day fund. What a sense of accomplishment to see that grow!

Readers responded with energy-efficient tips. Bless you for taking the time to write to me!

One reader’s utility hint for today. “One way I save on my electricity bill is to turn the water heater off from the breaker and only switch it back on for about 10-15 minutes every couple of days. In winter, my bill is down under $100 for a two-bedroom, two-bath condo with TV going every night.”

But, we need more personal cost-cutting strategies to include so that ultimately we have the most comprehensive Bermuda Tightwad list of cost-cutting tips applicable to Bermuda island living. Send them into me at martha@pondstraddler.com.

Space does not permit more here this time, but they will be posted on the Bermuda Tightwad Gazette Cost Cutters web page at http://www.pondstraddler.com/bermudatightwadgazette.htm

Special thanks also to the following incredibly helpful individuals at Belco: Linda Smith, senior vice-president, corporate relations; Donna Watson, customer care manager, and Jamil Rahemtula, energy efficiency and conservation manager.

Martha Harris Myron CPA CFP JSM: Masters of Law: International Tax and Financial Services. Appointed to the Professional Tax Advisory Council, American Citizens Abroad. https://americansabroad.org/ Principal: The Pondstraddler* Life™ Consultancy: international financial planning, publications, presentations for the challenging lifestyles of multinational individuals and their families residing, working, crossing borders, and straddling ponds in the North Atlantic Quadrangle. Specific focus for residents of Bermuda, the premier international finance centre. Contact: martha@pondstraddler.com