Energy bills will come down from New Year’s Day for the average user, Belco has said.

The electricity supplier announced that from January 1 charging structures will change, resulting in the regular household customer seeing a $6 reduction a month in their payments for the first quarter of 2023.

However, the Regulatory Authority has given the energy firm the scope to increase tariffs in accordance with fuel costs during the coming year.

The company said that it is aware high energy charges are “a burdensome expense for many in Bermuda who are struggling”.

A Belco spokesman said: “The Regulatory Authority has approved a rate change per kWh beginning January 1, and the average residential customer using 650 kWh per month will see a $6 decrease in their bill.

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Retail Tariff Review – Retail Tariffs 2023.pdf

“Fuel for energy generation is the largest segment of the per kWh rate.

“The cost of fuel is recovered through the fuel adjustment rate. The FAR reflects the total cost to deliver fuel to Belco’s central plant and is comprised of two parts – the fuel adjustment and Bermuda Government taxes on fuel.

“The FAR is approved by the RA on a quarterly basis and has decreased from 16.874 cents for the period of October to December 2022 to 14.304 cents for the period of January 1 to March 31, 2023.

“Belco has worked tirelessly during the last few years to increase operational efficiencies to reduce the impact on customers and will continue to do so.

“Belco is acutely aware that high energy costs are a burdensome expense for many in Bermuda who are struggling.

“As we work towards becoming a more sustainable company, Belco remains committed to increasing our efficiencies while ensuring that we can reliably meet the energy demands of Bermuda.”

However, the RA made it clear that prices could be changed depending on fuel charges.

The authority stated: “The allowed revenue may subsequently be adjusted during the period, as a result of changes in Belco’s fuel costs.”

The RA added: “The new retail tariffs are expected to yield a weighted average reduction in retail tariffs – across all customer groups – of 1.7 per cent.

“Average residential rates will decrease by 0.25 per cent, commercial rates by an average of 1.9 per cent, and demand – larger users – rates, by an average of 3.7 per cent.

“The FAR may subsequently be adjusted during the 2023 period as a result of changes in Belco’s fuel costs.”