The Government has moved swiftly to help customers affected by this week’s announced hike in electricity prices.

In a statement last night, David Burt, the Premier and Minister of Finance, said “a significant reduction in energy taxes“ will be introduced, which in turn will scale back an increase in electricity bills.

Belco said yesterday that after “a lengthy collaborative evaluation process with the Regulatory Authority of Bermuda”, energy rates will rise for all meters read on or after August 1.

A company spokesman added that the increase would see the bills of average household users rise by $27 per month, although high-end users — whose consumption is about 1,500 kilowatt-hours per meter reading cycle — could expect to see their monthly bills increase by $86.

The price hike was condemned by the Government and the Opposition, as well as charities.

On Tuesday, Walter Roban, the home affairs minister, said that the Government would “take action” to reduce the impact of the increase.

Last night, Mr Burt said that a strengthening economy meant the Government could afford to slash energy taxes by at least 50 per cent.

He added that the swift and decisive action demonstrated the Government’s ”commitment to supporting the wellbeing of all Bermudians”.

Mr Burt added: “An increase in electricity costs at this time is simply too high of an added burden on the backs of Bermudian families.

“An increase in our Belco bill doesn’t just drive up household bills; it further leads to increases by businesses, landlords and other entities having to adjust to this unexpected burden.

“By reducing energy taxes, we are taking concrete steps to ensure that the increase in electricity rates does not disproportionately impact our community.

“Our priority is to safeguard the financial stability of Bermudian families and the vitality of our local economy.”

Providing details of the tax reduction, the Premier said: “The country’s improved economic performance has given the Government the ability to reduce taxes further.

“The Government will reduce energy taxes by at least 50 per cent and will continue to monitor the situation closely and take further action if necessary to protect Bermudians from undue financial strain.

“The Cabinet approved the reduction yesterday, and we are working to have it tabled in the House of Assembly on Friday, so that the tax cut can go into place with immediate effect.

“By taking swift action to reduce energy taxes, we aim to provide immediate relief and demonstrate our unwavering dedication to the wellbeing of our people.”

Before Mr Burt’s announcement, Nicola Paugh, the executive director of the Nonprofit Alliance, said that there needed to be a national discussion about the growing needs of the community and what was expected of the third sector.

Dr Paugh said: “Further Belco price rises, justified or not, will add further strain on non-profits.

“The non-profit sector as a whole is already working resourcefully to serve the community, while they face not only inflationary pressures but also rising social needs.

“Non-profits are not able to pass cost increases on to their clients in the same way the private sector can because their clients are not typically the ones paying for the services they receive. The philanthropic community underwrites the costs.

“At the same time, the fundraising landscape is generally being experienced as more competitive and more difficult, restricting the ability of non-profits to adapt without impacting services.

“Given the level of social challenges facing our country, this is not the time to reduce services.

“Therefore, this creates a dilemma of how these increases in both costs and community need will be funded over the medium term, if current trajectories continue.

“There needs to be national-level discussion of the needs in the community, the expectations of the non-profit sector and who is funding it, and these discussions need to include public, private and third-sector authorities.”

The Nonprofit Alliance recently submitted a White Paper that made the case that the Government should help the struggling non-profit sector using revenues gained from the corporate income tax.

The paper reported that underinvestment in health and social supports had left the non-profit sector filling critical gaps while struggling to meet a growing and unsustainable demand.

Before the Premier’s announcement, Family Centre said that the electricity rate rise would affect many vulnerable families, and outlined a number of measures to alleviate the financial burden.

Sandy De Silva, its executive director, said the increase would undoubtedly have an impact on many families in the community, particularly those who are already struggling financially.

Dr De Silva said: “At Family Centre, we are acutely aware of the financial pressures faced by many of the families we support.

“For some, an additional $20 a month can mean difficult choices between essential needs such as food, medication and other critical household bills.

“The added stress of rising costs can also exacerbate mental health issues, creating a ripple effect of challenges for vulnerable families.”

She added: “Family Centre remains committed to supporting families through our comprehensive mental health counselling services for children aged 4 to 18 years old and their families, community outreach programmes for youth [Youth Leadership Academy, Beyond Rugby Bermuda, Beyond Yoga Bermuda], and our public advocacy initiatives.

“We want to work towards solutions that promote financial stability as well as mental wellbeing.”

The Opposition also weighed in earlier on the issue, questioning the purpose of the Regulatory Authority, which approved an increase in Belco’s allowed revenue that would result in the average bill increasing by 7.84 per cent. The full range is 7.61 per cent to 9.53 per cent.

Scott Pearman, the Shadow Minister of Legal Affairs, said the hike was a “punch in the gut for everyday Bermudians”.

In an opinion piece, Mr Pearman said some Bermudians were already forced to choose between paying for food, rent, electricity or healthcare because of financial hardship.

• UPDATE: this article has been updated with comment from third-sector organisations and the Opposition