Senators have approved amendments that will reduce the duty rate for diesel and fuel oils used by Belco.

Arianna Hodgson, the Junior Minister for Labour, Finance and Health, acknowledged that on July 8, the Regulatory Authority ordered increases to all Belco facilities charges and energy charges.

The RA has estimated that, as a result, average residential rates would have been raised by 8.5 per cent and commercial rates would have increased by 9.4 per cent.

Ms Hodgson said the Customs Tariff Amendment Act 2024 will cut the duty on the fuel used to generate electricity by 60 per cent, from 20 cents a litre to eight cents.

The move will result in a $10 million decline in tax revenues.

Douglas De Couto, the Shadow Minister of Finance and Economic Development, said while he welcomed the relief, the cost of electricity was more complicated. He referenced the 13 per cent increase on the base rate approved by the RA.

Dr De Couto said: “It is our understanding that the RA would like to have some additional powers to consider more widely the impact of its rates.”

Speaking of the Bill, he added: ‘“While we are not opposed to this change, we would really like to see a more holistic view of this, where the RA can really get into how much Belco is making. Is it the right amount? What are people getting for that money?”

Ms Hodgson responded: “This is an amendment that provides temporary relief designed to address current economic challenges that many of us are facing.

“It is not a tax break for Belco but I do believe it is a well-considered measure that will lower our electricity costs, stimulate economic growth, ensure some energy security and generally provide economic relief for Bermudians.”

She added: “I also recognise that this is an opportunity to start having more conversations about an investment in cleaner and more efficient technologies over time.”