A decreased fuel levy should reduce the average Belco bill for October by around $3.

The announcement about the lowered fuel adjustment levy ? which accounts for around a third of the total bill ? is the result of world oil prices dropping.

It means that where the ?add-on? cost from the levy was around $70 in this month?s average bill, it is likely to be approximately $67 next month, based on a customer using 711 kilowatt hours of electricity per month. Belco spokesperson Linda Smith Wilson said charges will vary depending on individual circumstances, but there is a full cost breakdown in each bill.

Louise Jackson, Shadow Minister for Community Affairs and Seniors, welcomed the news.

?Seniors will say hallelujah. Some of them literally cannot afford electricity and burn candles. Any type of relief is welcome,? she said.

Dale Butler, Minister of Community Affairs, which includes responsibility for consumer affairs, was also pleased.

?The lowering of any prices is good,? he said, commending Belco for passing the saving on to the consumer.

But he added: ?I would like to know if it?s going to stay like that for a long period of time.?

The fuel adjustment levy is a mechanism to smooth out the peaks and troughs in world oil prices, so household bills do not fluctuate wildly. It can go up or down, depending on global prices.

A statement from Belco yesterday said: ?Reflecting the recent decrease in the price of fuel, Belco?s fuel adjustment rate decreased 4.44 percent in October to 9.46 cents per kilowatt hour (kWh), from an all time high of 9.9 cents per kWh in September.?

The company buys supplies from a refinery in Trinidad and Tobago at roughly three monthly intervals. Because the latest shipment came in at lower prices that the previous one, further fuel adjustment rate decreases are expected for November and December.

Ms Smith Wilson said: ?We are doing what we can to contain costs. People can be more efficient, and there are lots of things they can do to reduce their costs by reducing their usage.? Tips can be found on the company website at www.belco.bm.

The Price Control Commission sets the levy rate every month based on a calculation that includes Belco?s cost of fuel and projected usage. The cost of fuel comprises of the actual cost on the world market plus transportation and a static Bermuda customs duty of $15.10 per barrel.

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