Electricity Prices Increase Effective April 1, 2022

Prices increase during crises for several reasons:

Inflation levels are the highest in 40 years:

• Inflation continues to rise largely due to the extended pandemic
• Demand is outpacing supply, causing shortages, supply chain disruptions, and price spikes between 5% to 8%

The Fuel Adjustment Rate (FAR) is increasing:

• The FAR is being impacted by the war in Ukraine
• Cost of fuel is very volatile – almost doubled from $70 per barrel in January, 2022 to close to $130 per barrel in March, 2022

BELCO’s Base Rates are increasing:

• For example, the cost of building, operating, and maintaining BELCO’s infrastructure to produce, transmit and deliver electricity

While prices continue to rise during multiple crises, protecting Consumers remains a key focus for the RA and Consumers can help.

The RA issued an Emergency General Determination (EGD) in March, 2020, to ensure the community stayed connected and provided with financial relief to consumers throughout COVID-19 pandemic

The Retail Tariff decreased for the past two years (2020 & 2021) (the rate at which electricity per kilowatt hour is sold to Consumers)

• The Retail Tariff process is designed to balance the interests of Consumers while ensuring that BELCO can recover their reasonable costs and investments

Revenue Allowance: The RA rejected BELCO’s proposed rate increase of 16%

• The RA acknowledges that BELCO recently made investments to ensure that Bermuda residents have access to a reliable supply of electricity. However, based on current market conditions and findings of the extensive Retail Tariff review, the RA determined for the Retail Tariff to increase by 7.6%

• The Retail Tariff will increase by approximately 1 to 2 cents per kWh based on the Consumer’s tiers of Usage Charges on your BELCO bill

Here’s how consumers can help to reduce their monthly BELCO bill:

Be aware of your energy consumption:

• Water Heaters – using a smart plug/app or timer to manage the use of your water heater can save up to 12% on your energy consumption
• LED Lights – use approximately 1/3 less energy than traditional lights, and last years longer than incandescent bulbs
• Refrigerators & Freezers – setting the refrigerator at 40 degrees F and freezer at 0 degrees F keeps food safe and can save up to 25% on your energy usage
• Food Prep – cooking and re-heating food in a small convection oven or toaster can save up to 50% on energy usage than larger appliances
• Laundry – using cold water to wash and hanging clothes to dry on a clothesline can save up to 10 kwHs of electricity for each load of laundry
• Air Conditioning – setting your air conditioner(s) at 78 degrees F, or turning the thermostat back 7 to 10 degrees F from your normal settings for 8 hours per day, can save up to 10% on your energy usage