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.