BELCO Promises Decrease in the Fuel Adjustment Rate January 1st

Bermuda Electric Light Company Limited (BELCO) today advised that beginning January 1st,2024 there will be a decrease in the Fuel Adjustment Rate (FAR).

With the approval of the Regulatory Authority, the FAR will decrease from the existing rate of 24.517 cents per kilowatt-hour (kWh) to 18.362cents per kWh.

The new FAR will come into effect as of January 1st, 2024, until March 31st, 2024, and will be effective for all bills issued during that period.

The FAR reflects the total cost to purchase and deliver fuel to the BELCO central plant and is comprised of two parts – the fuel adjustment and taxes.

The FAR is calculated quarterly and primarily rises and falls as the purchase price of BELCO’s fuel rises and falls. BELCO does not earn a profit on the FAR; any savings due to a reduction in BELCO fuel costs are passed on to customers.

BELCO President Wayne Caines said: “It is certainly good news that the cost of fuel has decreased, contributing to a welcome decrease in the FAR.The Regulatory Authority holds us accountable when calculating the FAR and ensures that our fuel costs are reasonable and efficiently incurred. Customers can visit our website where they can find many helpful tips on energy efficiency.

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