Belco is to freeze its electricity rates as families struggle to pay their bills during the economic crisis.But the electric company’s staff will miss out on salary increases as bosses delay the threat of redundancies and warn of more difficult months to come.The United Bermuda Party and the Bermuda Democratic Alliance applauded Belco for applying to the Energy Commission to defer a 1.5 percent average increase in rates due on New Year’s Day.They said the move underlined how tough times have become for families as the Island continues to battle through the recession.Economy Minister Kim Wilson said Government is ready to help families in need, and added that cutting back on electricity spending would be economically and environmentally good.Belco said in a statement last night: “The proposed electricity rate increase deferral is a corporate effort by Belco to assist its customers, as the Bermuda community experiences difficult effects of the economic downturn.“Indicative of the slow economy, Belco announced that it too is experiencing declining sales.”UBP leader Kim Swan said in some cases Belco has taken a sensitive approach to households behind on their bills to avoid disconnecting them.He said last night: “The decision by Belco to defer an increase in its rates is wise and significant; and its announcement that it must reorganise to address economic realities is a clear signal of the serious financial hardship our people are facing.“Belco is a company connected to every household in the country and they have a direct link to how this economic downturn continues to adversely affect Bermuda’s families.“We must also be mindful with many in Bermuda experiencing diminishing earning capacity, that means that more and more families are deciding between bills, food and medicine; with many families already living with expenses that exceed income.”BDA energy spokesman Michael Branco said: “This is another indication that the economy is still in decline.“Thank goodness Belco are freezing their energy rates. There was the payroll tax increase this year and an energy cost increase would have added to the issue for anybody struggling economically.“Electricity is a great measure of the economy. As we see that decline, that means people are cutting back because they want to reduce their power bill.”Mr Branco said energy consumption had reached a high during the past summer, with families increasingly using air conditioners. He said cutting back for cost reasons would bring environmental benefits.Senator Wilson said: “It seems to me that people are simply helping themselves as well as the environment by being more sensitive and efficient about their energy needs: reducing waste by unnecessary usage.“Just now I reminded my children to turn off their bedroom lights as they were in another room. It is acknowledged that the economic situation is a cause for concern for many families and the Government stands ready to assist where necessary.”In its statement last night, Belco also revealed it had told its employees of a wage freeze yesterday to “delay immediate workforce redundancies”.It said it is negotiating a wage increase freeze for unionised employees to delay other measures, including temporary lay-offs, redundancies and outsourcing.Operating costs will also be reduced through a reorganisation of working arrangements and benefits.President Andrew Parsons stated: “The next several months will require difficult decisions, as Belco manages down costs to enable long term operating benefits.“Redundancy is not something Belco wants to do, but it will be effected when required with a focus on the overall value of positions to Belco’s operation with a view of cost reductions.”Mr Swan added: “The decision to find ways to delay redundancies within their organisation indicates that they care for people while faced with difficult business decisions.“It is important to appreciate that it will take a great deal of give and take between employer and employee to get through this very difficult economic period.”