Belco customers will see rates change at the start of next month, the company announced today, with most bill payers expected to notice a decrease in their energy costs.

A company spokesman said that while base rates will increase on January 1, the fuel adjustment rate will fall, which will result in an overall decrease for the “average residential customer”.

According to belco.bm, for residential customers, the base rate for the first 250 kilowatt hours will rise from 15.509 cents to 17.193 cents as of the new year.

Rates for the next 450 kilowatt hours will increase from 27.692 cents to 30.698 cents, while the rate for additional kilowatt hours will rise from 43.616 cents to 48.350 cents.

However, the FAR will fall from 17.539 cents per kilowatt hour to 13.36 cents per kilowatt hour, also on January 1.

“For a low-usage residential household whose consumption is 200-kilowatt hours per meter reading cycle, there will be a decrease of approximately $2.55 to a monthly bill after discount,” the spokesman said.

“For the average residential household whose consumption is 650-kilowatt hours per meter reading cycle, where the majority of Bermuda residential customers fall, there will be a decrease of approximately $6.55 to a monthly bill after discount.

“For a high-usage residential household whose consumption is 1,500-kilowatt hours per meter reading cycle, there will be a decrease of approximately $1.75 to a monthly bill after discount.”

Shelly Leman, managing director of transmission, distribution and retail for the energy provider, said: “Belco remains committed to ensuring that we can reliably meet the energy demands of our customers while laying the foundation for transitioning to a sustainable energy future.

“Belco offers a number of energy efficiency tips to customers who would like to take more control over their energy usage in order to help lower their bills. Any action taken to reduce energy consumption can help to alleviate the impact on your overall monthly bill.”

The Government passed amendments this year to slash the duty rate on fuel by 60 per cent in an effort to offset rate increases approved by the Regulatory Authority of Bermuda.

In September, David Burt, the Premier, told the House of Assembly: “The RA has estimated that as a result of the uprated charges, average overall residential rates would have been raised by 8.5 per cent and commercial rates would have increased by 9.4 per cent.

“This Government recognised that this announcement caused concern and added stress for families.”

Mr Burt said that theamendments would cut the duty on the fuel used to generate electricity from 20 cents a litre to eight cents, resulting in a $10 million drop in tax revenue.

Last week, Mr Burt announced in a Pre-Budget Report that the Government plans to slash energy tax by 20 per cent.