The annual Festival of Lights has been cancelled due to the cost of electricity and the difficult economic times.

The Bermuda Electric Light Company Ltd. (BELCO)and BF&M Insurance Group hosted the festival each year, which encouraged people to decorate their homes and businesses as a way of celebrating the winter holiday season.

The winners of the competition traditionally received awards and then donations would be made on their behalf to the charity of their choice.

Yesterday, BELCO and BF&M announced the 13th Festival of Lights would be cancelled, however donations would still be made to two charities — The Coalition for the Protection of Children and the Hands of Love Ministry.

A.L. Vincent Ingham, BELCO's president and CEO said: "We are pleased to continue the charitable tradition that is at the heart of the Festival of Lights and will look to resume the competition in 2009 when we hope that the economic climate may be better."

A total of $12,000 will go to each charity and John Wight, the president and CEO of BF&M said with, or without, the competition the sponsors wanted to help.

He said: "BF&M believes that through charitable giving we can ease some hardships, which families may experience. That has always been the purpose of the Festival of Lights contest and so I am pleased we are supporting two key charities that will assist families in the New Year."

Over the past 12 years both companies have donated more than $118,300 to various charities. This year Sheelagh Cooper, chairperson of the Coalition for Protection of Children, said the funds would help provide food baskets for needy families.

"The money we receive from the Festival of Lights will ensure that families being assisted by the Coalition for the Protection of Children will receive food baskets throughout the year, 2009.

"This will allow us to direct other resources to needs that are sure to emerge as the year progresses."

Hands of Love founder Fern Wade was just as appreciative.

She said: "This generous donation will greatly contribute to us being able to provide 100 seniors and 530 families with food baskets, groceries, clothing and basic necessities that many of us take for granted.

"This money will enable the charity to continue to provide for those in need well into the New Year."

Plans to resume the competition will be reviewed in 2009.