(CMR) Several people in Bermuda gathered outside the Bermuda Electric Light Company (BELCO) on Monday, 9 October, protesting an increase in the Fuel Adjustment Rate (FAR), which took effect this month.
According to BerNews, BELCO previously advised that beginning on October 1st, 2023, there would be an increase in the FAR.
A spokesperson said, “With the approval of the Bermuda Regulatory Authority, the FAR will increase from the existing rate of 16.513 cents per kilowatt-hour [kWh] to 24.517 cents per kWh. The FAR is comprised of 20.09 cents per kWh FAR and 4.427 cents per kWh Government tax on fuel. This increase of 48.5% relative to the third quarter of 2023 is primarily the result of the mix of fuel necessary to meet demand in light of current and projected engine availability for the quarter.”
BerNews reported that since the announcement, people have expressed concern about the impact on the island’s already high cost of living.
The Bermuda Industrial Union [BIU] has reportedly said it has “serious concerns about BELCO’s latest increase in the Fuel Adjustment Rate,” as “this increase will adversely impact the disposable income of each family in Bermuda” and “the cost of living in Bermuda continues to spiral out of control.”
BELCO President Wayne Caine explained that there have been several misconceptions as customers’ bills are not increasing by 48%; only a portion of the bill will increase. He said the base rate and other charges will remain the same.
“It is not a 48% increase on your total bill. It’s a 48% increase associated with the FAR only,“As an example – for the average household, it equates to an approximately $52 increase in your bill. For the average household, if your bill was approximately $280, with this increase, the bill will now be approximately $330,” he said.
“At BELCO we understand that any increase is significant. However, it is important to know the facts and not be misled by false information that is circulating in the community. If customers have any questions or concerns, they can contact BELCO’s Customers Experience Team on 299 2800,” he added.
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