Bermuda Electric Light Company Limited (BELCO) today announced that customers will see a modest reduction of overall rates following approval by the Bermuda Regulatory Authority (RA). The new rates were developed with extensive effort by BELCO and the RA to implement the retail tariff methodology issued by the RA in 2018. These new rates will be applied to all meter readings as of January 1st, 2020. Further detailed information on these changes will be provided in the coming weeks.
BELCO President Dennis Pimentel said:
“BELCO remains committed to keeping rates as low as possible and we welcome the new rate reduction. Although we have encountered significant cost pressures during recent years, including inflation and decreased demand for electricity resulting from population decreases, BELCO has continued to invest approximately $250 million in our infrastructure. These upgrades will allow us to import renewables onto the grid, ensuring reliable and sustainable electricity for Bermuda.
Despite these pressures and investments, we have not raised customers’ electricity rates. Instead, we have focused on efficiencies and savings. For example, the North Power Station and Battery Storage System are expected to save $20 million per year on fuel costs. We are projected to save more than $30 million in expenditures compared to 2015 through efficiencies and material savings.
We look forward to continuing to work with the RA on reducing rates for BELCO customers and providing a safe and secure energy future for Bermuda.”