Bermuda’s power company has confirmed that customers’ bills are to rise next month — but said the utility made no profit from increases to fuel rates.

A roughly 16 per cent rise in Belco’s fuel adjustment rate, announced over the weekend, will come into effect on April 1, as approved by the Bermuda Regulatory Authority.

Wayne Caines, the Belco president, said the move “reflects the global reality of fluctuating fuel prices that are beyond our control”.

It follows a drop in rates that came into effect on January 1.

Krista Barnes, the company’s director of communications, said: “This adjustment reflects the actual cost of fuel used to generate electricity, which varies quarterly based on global fuel market prices and overall fuel consumption within our community.

“We understand that changes to your electricity bill can be challenging.

“The FAR is a direct pass-through charge, meaning that all fuel costs and savings are passed directly to you with no profit for Belco.”

She added: “Importantly, while the fuel component is changing, the base electricity rates will remain the same.”

The FAR is to rise from 13.36 cents to 15.515 cents per kilowatt-hour.

The new rate reflects a 13.637 cent fuel rate combined with the government fuel tax of 1.878 cents per kilowatt-hour.

The fuel adjustment is based on the total cost of purchasing fuel, and includes shipping expenses.

The FAR, which is calculated quarterly, fluctuates as the purchase price of Belco’s fuel rises and falls.

The company described the rate as “a cost-recovery mechanism”, with any expense or savings passed on to its customers. Details on tariffs are also available on the Belco website.

Summers typically come with higher bills because of increased electricity usage owing to air conditioning.

Belco said that low-use homes consuming 200kWh per meter reading cycle can expect $4.31 extra on monthly bills.

Homes described as average, at 650kWh will see bills rise by roughly $14, and high-use residences, at 1,500kWh, should expect to pay about $32.33 more per month.

Mr Caines emphasised that the company remained “committed to exploring energy solutions that will help stabilise costs in the long term” — adding that energy-saving tips were posted on its website.

Ms Barnes said Belco continued to explore reducing its reliance on fossil fuels.

Fuel rates jumped significantly on October 1, 2023, again because of a global surge in the price of oil, causing demonstrations outside Belco.

The regulator subsequently pledged to review how it calculated the fuel adjustment rate, with the Government moving to cut its fuel taxes to ease the impact on consumers.