Average monthly power bills from Belco are expected to increase by $14 as a result of an intended rate rise from April 1, residents have been advised.

The Government said that the Ministry of Home Affairs was notified on Friday of the planned change, which was linked to fluctuating global fuel market conditions.

It said the utility company’s fuel adjustment rate will rise from 13.36 cents to 15.515 cents per kilowatt-hour — or 16 per cent.

The Government added: “This adjustment will result in an average $14 increase in residents’ monthly electricity bills.

“While the base rate for electricity services remains unchanged, the increase to the FAR is attributed to fluctuating global fuel market conditions reviewed quarterly by the Regulatory Authority following application from Belco.”

Alexa Lightbourne, the Minister of Home Affairs, said: “This increase in the FAR comes at a time when Bermuda’s families are already enduring the weight of economic hardship and are challenged by their monthly electricity bills.

“The Government announced in its Throne Speech that it will lower the costs of living for its residents, and one week later received notice by a community stakeholder that it intends to increase its costs.

“We believe in transparency and wanted to inform the public.”

She said Belco’s decision to apply for and implement the adjustment is part of the company’s standard business practices.

Ms Lightbourne added: “For the Government to be successful in its mandate, we invite the business community to do its part to also promote fairness and relief to serve the betterment of all who live and work in Bermuda.”

The Royal Gazette contacted Belco last night for comment.

In December, the company announced a rates change resulting in a decrease in energy costs for most bill payers.

The Government then applauded fuel adjustments as the home affairs ministry said the move was expected to result in an average reduction of 0.54 per cent to 2.66 per cent across customer classes.