Log In

Reset Password

RA confirms review of Belco pricing methodology

The Regulatory Authority of Bermuda is an independent, apolitical, economic regulator established under the Regulatory Authority Act 2011 (File photograph)

The Regulatory Authority has confirmed that it is to review the methods it uses to calculate the price of electricity.

The independent public body issued a statement yesterday after the Government revealed that a controversial hike in electricity prices would be scaled back.

An amendment to the Fuel Adjustment Rate introduced at the beginning of this month saw electricity bills rise by about 20 per cent, prompting outrage and protests from residents — and a pledge by Walter Roban, the Minister of Home Affairs, that the matter would be investigated.

On Monday, a government spokesman confirmed that, after a meeting with stakeholders, it had been agreed that the FAR increase would be reduced “in the immediate future”.

The spokesman added: “The stakeholders have also agreed to change the process and methodology for calculating the FAR. This change aims to provide a more sustainable approach to addressing the volatility in fossil-fuel prices in the long term.”

In yesterday’s statement, the RA made no reference to a reduction in the FAR.

It also failed to confirm that the RA had agreed to change its methodology — stating only that it would be reviewed. The organisation had previously defended its methods.

The statement said: “The Regulatory Authority has a well-established process for continually reviewing and refining methodologies.

“As part of our commitment to ensure that our regulatory approach remains transparent and beneficial for Bermuda’s residents and stakeholders, we have agreed to revisit this process alongside all relevant partners in an effort to help lessen the burden on consumers during these challenging times.

“In a world with ever-changing circumstances, methodologies may evolve to adapt to current conditions, not because they were incorrect in the past. Our focus is on continuing to achieve the best outcomes for Bermuda as a whole, and we consider all relevant factors to make informed decisions.”

Electricity supplier Belco did not respond to requests for comment.

You must be Registered or to post comment or to vote.

Published October 25, 2023 at 7:55 am (Updated October 25, 2023 at 7:55 am)

RA confirms review of Belco pricing methodology

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon