Electricity supplier Belco has defended its decision to ramp up prices, claiming that global inflation and infrastructure upgrades are to blame.

The company also insisted that the increase was calculated “following a lengthy collaborative evaluation process with the Regulatory Authority of Bermuda”.

But Walter Roban, the Minister of Home Affairs, described the new rate as "outrageous and disheartening news“, adding that it was ”a severe blow to hardworking Bermudians struggling under the crushing weight of high costs“.

According to a company spokesman, the increase will see the bills of average users rise by $27 per month, although high-end users — whose consumption is about 1,500 kilowatt hours per meter reading cycle — will see their monthly bills increase by $86.

The spokesman said: “The rate increase is in line with increases in similar jurisdictions and provides Belco the ability to continue offering a safe and reliable supply of electricity.

“The cost of doing business globally has increased, particularly over the last two years. These increases have been broad-based and have affected the cost of items such as raw materials, the shipping and delivery of goods and financing costs.

“While Belco continuously looks at ways to reduce its operational expenses, it is not immune to the challenges that a global inflationary environment presents, and it must continue to invest in the grid and other infrastructure to provide the safe and reliable electricity supply that Bermuda has become accustomed to.

“As part of Bermuda’s regulatory process, Belco has submitted its projected operational costs and capital expenditure for 2024 and 2025 to the Regulatory Authority for consideration and approval.

“While some capital projects were not ultimately approved, those that have been approved are related to ongoing investment in grid reinforcements and other projects that ensure reliability of supply to customers.

“The resulting increase is on base electricity rates and affects the energy charge and facilities charge on your bill. As a residential customer, this means the more energy consumed by a household, the more charges will be incurred.”

In a statement last night, Mr Roban said: “The global events driving up the cost of electricity are undeniable. Still, the RA's decision to increase rates, following the request from Belco, will hit families hard, forcing many to make even more sacrifices to keep the lights on.

"Despite Belco not receiving the total 28 per cent increase they brazenly requested, the RA's approval of a $35 million modification to Belco's revenue allowance, which is lower than the $59 million sought, still imposes an additional burden on the average consumer.

"The insistence on maintaining Bermuda's long-term sustainability and reliability at the expense of its citizens' immediate wellbeing is a bitter pill to swallow. The RA's actions, under the guise of future investments, show a blatant disregard for the current suffering of many in our community.

"Earlier today, Cabinet discussed this latest increase, and the Government will take action to reduce the impact of this Belco increase on Bermudians."

Shelly Leman, the company’s managing director of transmission, distribution and retail, said the company was “committed” to ensuring that energy demands could be met while laying the foundation for transitioning to a sustainable energy future.

Ms Leman also offered customers some energy-saving tips such as turning television sets off when no one is watching, not overcharging mobile devices, and adjusting air-conditioning thermostats.

Ms Leman said: “These are just a few tips that customers may want to consider. Any action taken to reduce energy consumption can help to alleviate the impact on your monthly bill.

“Additionally, Belco has a dedicated team to support customers who may be experiencing uncertainty. Those customers can reach out to the Belco credit team on 295-5111.”