Legal Documents

Section 35(1) of the Electricity Act 2016 (EA) requires the RA to determine the Retail Tariff in accordance with a methodology set by general determination. The relevant framework for the current Retail Tariff exercise was set by the RA in the Regulatory Authority (Retail Tariff Methodology) Interim General Determination (GD) 2023 dated 10 April 2023 and continued 29 December 2023. The principles set out in part 6 of the EA also govern this exercise.

Section 35(2) of the EA requires the methodology set by the RA to seek to enable the Transmission, Distribution & Retail (TD&R) Licensee to seek to generate a total revenue (Allowed Revenue) that recovers reasonable costs of service incurred in achieving the service standards, including investment costs (and an appropriate return on such investments), operating expenses, fuel procured for generation, generation procured, and other expenses including Government authorisation fees, the Regulatory Authority fee, and other statutory fees. The purpose of this Order is to set out the RA’s decisions regarding the Allowed Revenue for 2024 and 2025 which will underpin the retail tariffs to be applied for both years by the Bermuda Electric Light Company Ltd (BELCO) as the TD&R Licensee.