A private members-only club says its operating costs have risen steeply because Belco ditched a “substantial discount” on electricity for hotels.

The power company responded that the move came after a review of its concession to the industry, which had come at a cost to its other customers.

Roderick O’Connor, chairman of Coral Beach & Tennis Club, shared the news in a recent letter advising members that their dues for the 2026-27 membership year would rise by 5 per cent.

He wrote: “As many of our resident members know, utility costs on island have steadily increased over the years.

“Unfortunately, Belco has abandoned the Bermuda Hotel Association’s substantial discount for electricity charges this year, causing a significant increase in operating costs.”

The letter, shared by a reader with The Royal Gazette, continues: “The club’s health insurance costs have also continued to increase at levels more than the basic cost of living increases in Bermuda.

“We will continue to find ways to operate more efficiently; however, a reduction of service levels will not be compromised in favour of lower dues increases”.

Stephen Todd, chief executive of the Bermuda Hotel Association, confirmed the scheme was discontinued this year by Belco, although he could not say what per cent discount it provided.

He said it had been in place for more than a decade and was aimed at helping hoteliers get through the “shoulder months” from November to March, when visitor numbers were lower but operating costs remained high.

“When they are going through the shoulder period, their electricity doesn’t necessarily reduce,” he said. “They are a 24-7 operation.

“[The discount] would have been something that, in my mind, would have been very beneficial for the hotels.”

Mr Todd said the decision to stop the discount came as a “bit of a surprise” but he had not received negative feedback about it from members.

“What they have actually done is aligned our discount with the standard discount,” he said, referring to Belco’s policy of giving a 5 per cent prompt-payment discount to residential customers who pay their bill in full before a deadline date.

“I would imagine that Belco don’t want to be seen to be treating a corporate industry sector differently to other customers. That would suggest a double standard.

“They are just ensuring that our billings are in line with all other consumers.”

The Royal Gazette has asked Belco, Coral Beach & Tennis Club, the BTA and the tourism ministry for comment.

Belco managing director Shelly Leman said: “For many years, Belco has worked with and supported the Bermuda Hotel Association by offering extended discounts on electricity bills to BHA members during the shoulder season.

“This initiative has been an important part of Belco’s shared commitment to strengthening the island’s tourism industry.

“As the industry and regulatory landscape have evolved, so too have Belco’s obligations. Belco has undertaken a comprehensive review of its cost structure and pricing mechanisms including assessing the extended discounts currently provided to BHA members. While these discounts have historically delivered value to the hospitality sector, they generate costs that are ultimately borne by other customers.

“To maintain equitable treatment for all customers under the regulatory framework, Belco discontinued the extended BHA member discount at the end of April 2026. The prompt pay discount of 5 per cent on non-pass-through charges afforded to all customers will still apply.”

She added: “Belco appreciates the many years of partnership with the BHA and remains committed to maintaining open communication with both the association and its members.”