From August 1, electricity rates will be restructured and customer bills redesigned, Belco announced — a move welcomed by the Regulatory Authority.

Belco said rates will be “unbundled for greater transparency”, adding that usage and demand charges previously bundled to reflect the total cost to generate and deliver electricity to customer homes will be separated.

The utility said the changes, directed and approved by the RA, were guided by transparency and a fairer sharing of costs.

Impact varies by customer class and usage. Belco said it was “not a single across-the-board increase or decrease”.

For most residential customers who do not have distributed generators — primarily rooftop solar — the change means an increase between $1.62 and $4.72 per month.

The change will show what customers pay for the generation of their electricity and what they pay for transmission and distribution.

Wayne Caines, Belco president, said: “The new rate structure demonstrates our commitment to fairness and transparency and is cost-reflective of the energy provided to our customers.

“I encourage residents to visit our website to learn more about what this change means for them.”

Belco said the rates themselves here been adjusted, most notably the facilities charge, to be more cost-reflective of the service provided. Customers who both self-generate and consume energy from the grid use the system differently from those who only require electricity to be delivered to their homes.

It said the revised rate structure better aligns charges with actual grid usage.

Customers with distributed generators will see a larger increase, primarily in their facilities charge, reflecting the increased cost of operating and maintaining a grid carrying power to and from their home or business, while maintaining a reliable supply for the entire island.

A full breakdown of the new rate structures, with tables and examples, is available at belco.bm.

The RA said of the changes: “The redesigned structure forms part of the RA's statutory responsibility to promote efficiency, ensure fair pricing, safeguard the long-term interests of Bermuda's consumers and support a reliable and financially sustainable electricity system.”

The move came after regulatory review beginning in 2022, also taking into account a May 2025 ministerial direction requiring the RA to consider differentiated tariff classes based on customers' grid reliance.

Donn Foggo, the RA director of communications, said: “We understand that, due to some customers expecting to see changes to their bills, there will be questions — but a main objective of the redesign is to enhance transparency.

“Every customer pays for electricity, and every customer also depends on the grid. This redesign helps ensure those two things are better aligned by making bills easier to understand, ensuring customers contribute more fairly based on their usage and supports a reliable electricity grid for the island.”

The regulator has published a detailed report on its website.