The first electricity price hike for nine years was not a result of the devastating fire that plunged the Island into a three-day blackout in July, Belco said yesterday, but the price of electricity will continue to spike to all-time highs until 2007. Bermuda Electric Light Company (Belco) vice president of corporate communication Linda Wilson-Smith said yesterday an average 1.5 percent rate increase tomorrow had been approved over six months before the Belco fire.

?No, it has nothing to do with the fire,? Mrs. Smith said. ?The increase was approved by the Price Control Commission, to take effect in 2005, 2006 and 2007, at the end of 2004.?

The increase affects both residential and commercial customers.

Households will see 50 cent increases (from $12 to $12.50) and usage over 100 kilowatt hours per month (from $20.40 to $20.90).

Offices will be charged an extra 50 cents for facilities charges. Businesses using less than ten kilowatt hours per month will see increases from $12 to $12.50 while businesses using over ten kilowatt hours per month will see increases from $17 to $17.50.

?The fuel adjustment charge will continue to appear as a separate figure and will fluctuate with the changing price of oil,? Belco said.

In a letter to Belco shareholders, CEO and president Garry Madeiros said the company?s major focus this quarter was on stabilising its system from the effects of the July 14 fire.

Belco also said it will announce its plans for the next 20 years in 2006.