The Minister of Home Affairs issued a statement of support backing a court ruling that upheld an electricity-rate decision by the regulator.

In his decision last Friday, Chief Justice Larry Mussenden said the Regulatory Authority was operating within its powers when it rejected a big increase in electricity prices proposed by Belco.

The utility was asking for a 16 per cent rise in the base rate. The RA agreed to 7.5 per cent.

Belco appealed, arguing that the RA’s decision in the 2022-23 rate review was based on errors of law.

“This decision is excellent news for the RA and the ratepayer,” Walter Roban said in a statement. “The RA is responsible for looking after the end user's best interests.”

This includes adequacy, reliability and quality of electricity service, he said.

"The regulator must challenge any actions within the regulated industries that do not appear to support consumer price and cost stability,“ the minister added.

"In a challenging economic climate, the utility cannot expect to make an unbridled profit on the backs of the ratepayers, many of whom are under significant economic duress.“

Mr Roban noted that Belco said it turned a decent profit in 2023 as other companies owned by Canada’s Algonquin Power & Utilities faced difficulties.

Although Belco is a private company, the minister added, it remains in the service to the public, a duty that should not be disregarded.

“I must note that the RA can only consider those used and valuable assets and any expenses prudently incurred in their considerations and calculations to arrive at electricity rates,” he argued.

“That means the utility's assets must be in good working order, being used and functioning as they should for servicing the people of Bermuda.”

He said he fully supports the RA for giving the highest priority to one of its principal functions under the law, to promote the interests of the residents and consumers, especially at a time of high inflation and cost-of-living challenges.

"I applaud the willingness of the regulator to defend their decisions around these issues.

"Good regulation ensures fairness, and not just for the utility, and I commend the RA for upholding their duties to the ratepayer.

"Hopefully, this decision is a harbinger of things to come for the RA and regarding future rate cases."