Electricity bills are set to ease in 2024 after the Regulatory Authority approved a drop in the Fuel Adjustment Rate used by Belco to add up its charges to consumers.

The move follows a controversial increase that came into effect on October 1, attributed to a rise in global prices.

The increase earned a rebuke from Walter Roban, the home affairs minister, who demanded a review of the RA’s methodology.

Also in October, Mr Roban threatened to take the RA to court after the regulator upheld its increase in rates.

The minister said that higher electricity bills threatened the island’s economic recovery and hurt low-income residents the most, who are already struggling with island’s high cost of living.

It brought frustrated protesters out to picket the Belco headquarters on Serpentine Road in Pembroke.

The RA announced last night that the FAR will drop from 24.517 cents per kWh to 18.362 cents per kWh, effective January 1 until March 31.

The regulator said its decision came after a review of Belco's 2024 first-quarter FAR submission, indicating a decrease in fuel pricing.

In recent meetings, the RA reviewed the methodology for calculating the FAR with “the best interests of the community in mind”, as well as “ensuring a fair, competitive and innovative marketplace”.

The regulator added: “The RA is dedicated to fostering a sustainable and advantageous environment for Bermuda.

“By leveraging the expertise of our knowledgeable team, we make data-driven decisions that are aligned with our objectives under the legislation.

“This adjustment in the FAR reflects the RA’s steadfast commitment to fulfilling its mandates under the legislation.”

Wayne Caines, the president of Belco, added: “It is certainly good news that the cost of fuel has decreased, contributing to a welcome decrease in the FAR.

“The Regularity Authority holds us accountable when calculating the FAR and ensures that our fuel costs are reasonable and efficiently incurred. Customers may visit our website where they can find many helpful tips on energy efficiency.”