Utility company Bermuda Electric Light Company Holdings Ltd. has reported net earnings of $20.5 million for last year -- an increase of nearly 30 percent on the year before.

A company spokeswoman last night explained that the principal reason for the increase was a change in the accounting requirements for pensions and post-retirement medical benefits resulting in an increase to earnings of $943,246.

Earnings for 1999 were also reduced by a $3.5 million provision for loss on Holdings' investment in Quantum Communications.

The lion's share of the takings was made by the company's largest operating subsidiary, Bermuda Electric Light Company, which returned earnings of $19.2 million -- up 5.8 percent on 1999.

Total kilowatt hour sales rose by 2.4 percent, driven largely by growth in residential consumption. Despite milder summer temperatures, sales in this sector increased at a rate of 3.7 percent. Commercial sales also increased, but at a lower level than 1999.

But the closure of a number of hospitality industry properties meant that another subsidiary, Bermuda Gas, saw earnings dip by 4.3 percent on the previous year.

Gas volume fell by 2.2 percent although appliance sales were up 7.1 percent.

Net earnings also dropped for the organisation's other subsidiary, Besco.

Energy service and protection equipment sales declined in 2000 resulting in a 30.6 fall in earnings on the previous year.

But the spokeswoman pointed out that several new contracts were signed late last year "and it is expected that these will positively impact Besco's results during 2001''.

The positive result was reflected in the group's share dividend, which increased from $1.40 per share to $1.54 in the final quarter of last year.

Belco's profits hit $20.5 million Group president Garry Madeiros said: "We are very pleased with the results achieved by the Belco Holdings group in 2000.

"We continue to become a more efficient and effective organisation. We have improved our work procedures, implemented more efficient systems throughout our plant and overall, achieved more with a declining employee base.

"These efforts however, are sometimes compromised by factors that are beyond our control and therefore go unnoticed by our customers.

"A good example of this is the increasing cost of electricity as a result of rising world fuel prices, in spite of our best efforts to control costs and avoid rate increases, as we have done for the past five years.

"We look forward to another rewarding and challenging year in 2001 and to maintaining the level of results achieved in 2000 and previous years. I thank all of our employees for their consistent hard work, determination and loyalty in achieving such positive results in 2000.''