A political row has erupted over this week’s hike in electricity prices, with all three parties criticising their opponents.

On Tuesday it was revealed that Belco was to raise bills by about 8 per cent, resulting in a monthly increase of roughly $27 for average consumers. The increase was approved by the Regulatory Authority.

The Government took immediate action, announcing on Wednesday that it would cut taxes on electricity, which in turn would scale back the increase in electricity bills.

Last night, the Free Democratic Movement issued a statement saying that it supported the tax cut.

However, the party questioned the Government’s motives, calling the break “an unsustainable pre-election gift”.

An FDM spokesman said: “While we acknowledge the benefits of this tax cut, it is important to recognise that the timing appears politically motivated.

“Lowering taxes is always helpful, but it should be part of a broader strategy for economic stability. While we endorse this initiative, we believe it should have been implemented earlier, as the country has been suffering from rising electricity bills for well over a year.

“It is imperative that the Government moves beyond short-term fixes and focuses on sustainable solutions that address the root causes of our economic challenges. This is our focus — long-term change, not short-term, politically motivated and unsustainable pre-election gifts.”

The spokesman said that the Government should take some responsibility for the series of price increases in the past year, saying that it had refused to allow the electricity provider to utilise the technology that the new North Power Station was designed to use.

The spokesman said: “To ensure long-term energy affordability, we strongly recommend that the Government collaborate with Belco to introduce liquefied natural gas as a cleaner and more cost-effective energy source. Such an initiative could provide sustainable relief for Bermuda’s future.

“Policies should prioritise the wellbeing of all Bermudians, particularly the vulnerable populations who are most affected by high energy costs and economic instability. This may well be a tall ask for this administration, but a necessary one.

“By implementing balanced and forward-thinking policies, the Government can foster a stable and prosperous future for our island.”

The spokesman added that any tax cuts would have to be countered with fiscal prudence to prevent the island’s national debt increasing.

He said: “Lowering energy taxes is a positive step but must be paired with reduced government spending to avoid exacerbating our unsustainable debt.”

“Without fiscal prudence, there is a risk of further increasing our already unsustainable debt, which poses a long-term threat to Bermuda’s financial stability.”

That concern was raised by Scott Pearman, the One Bermuda Alliance spokesman on home affairs.

In an article in The Royal Gazette yesterday, Mr Pearman said that slashing electricity taxes was a risk because “PLP mismanagement has left our island in a rocky financial state”.

“We would not have left it so long and let things get this far down the road. As long ago as the summer of 2022, the OBA highlighted the urgent need for greater engagement by the Government on the issues concerning Belco and the RA.”

Mr Pearman also questioned why a government review of electricity prices promised last October had still not been made public.

He pointed out that the OBA had called for a bipartisan approach in seeking solutions, but that proposal was rejected by the Government.

Yesterday, Walter Roban, the Minister of Home Affairs, disputed Mr Pearman’s version of events.

He said: "Regarding the OBA's purported offer to collaborate on a bipartisan legislative solution to delay Belco cost increases, the facts, however, tell a different story.

"First, while the OBA claims to have been prepared to work with the Government, it is important to note that at that time, their offer lacked substantive details and actionable plans. In contrast, the PLP recognised the urgency of the situation and took immediate and decisive action.

"The Government's decision to conduct a much more critical review of the Regulatory Authority's methods was a strategic move aimed at addressing the root causes of the proposed cost increases.

“This review was necessary to ensure that any future adjustments to energy costs are both fair and justified and ultimately protect the interests of the Bermudian people. We continue to work with the RA in the appropriate manner so that government and regulatory policy keep the interests of all residents and ratepayers a top priority.

"In conclusion, while His Majesty's Opposition's statements may suggest a willingness to operate in a bipartisan manner, their actions of launching attacks via the media say otherwise.

"The Government remains dedicated to implementing policies that ensure fair energy prices and protect the livelihoods of Bermudians. The recent developments demonstrate that the Government's strategy is not only sound but also effective in achieving the desired outcomes for the people of Bermuda."

The Royal Gazette forwarded the FDM’s statement to Mr Roban requesting comment. No response was received by press time.