yesterday.

They had hoped to keep the lid on increases to stem huge losses among hotels.

But on Tuesday the Price Commission agreed to push up prices by 2.75 percent this year.

The same hike was approved for 1995 and 1996 -- despite calls from the Bermuda Electric Light Company for 3.5 percent rises.

Commission secretary Mr. Philip Compton hailed the ruling as "good for everyone''.

New Belco president Mr. Gary Madeiros said increases were needed to finance $37 million in capital improvements.

He said the hikes would be reviewed if inflation ran ahead of them.

But yesterday Bermuda Hotel Association (BHA) president Mr. Stephen Barker reacted with disappointment.

And he warned: "The Bermuda community must address the fact that hotels cannot continue to suffer losses without it having an eventual negative impact on the social and economic lives of all residents.'' Last month an unaudited report revealed Bermuda's major hotels lost an amazing $47 million over the last six years.

Losses for 1993 totalled $5,370,000, according to the report by accountants Cooper & Lines for the seven years ending September 30, 1993.

The eight hotels include Belmont, Harmony Hall, Elbow Beach, Grotto Bay, Marriott's Castle Harbour, Sonesta Beach, Southampton Princess and Hamilton's Princess.

The BHA had planned talks with Belco and Bermuda Telephone Company in an effort to curb costs.

Yesterday Mr. Barker said hotels had been "challenged for many years to contain their costs of operation''.

The Cooper & Lines' report showed much more needed to be done.

Mr. Barker stressed the hotel industry was competing worldwide for business.

It could not increase its "rates to offset unwarranted raises in electricity,'' he added.

Last year hoteliers also hit out over electricity rises.

They pointed out the cost of electricity was much lower in other countries.

For instance, Bermuda's largest hotel, the 1,500-bed Southampton Princess, would pay about half as much if it was in Freeport, Puerto Rico, Orlando, Arizona, or Hawaii, it was claimed.