The facilities charge was first introduced in 2010 and is currently $33 on all monthly residential bills.
Effective from 1st June, it will be tiered based on the annual rolling average of electricity (kWh) consumed by the customer monthly.
What does this mean?
Using the chart below, find the tier matching your current average monthly Belco bill to determine whether your Facilities Charge will decrease, remain unchanged, or increase.
| Tier | Daily Electricity Usage (kWh) |
Monthly Electricity Usage (kWh) |
Current Average Monthly Belco Bill* |
Change in Facilities Charge |
| 1 | 0-10 | 0-304 | $33 to $137 | ↓ -$18 |
| 2 | 10-15 | 304-456 | $137 to $197 | ↓ -$8 |
| 3 | 15-25 | 456-760 | $197 to $324 | no change |
| 4 | 25-50 | 760-1520 | $324 to $675 | ↑ +$16.50 |
| 5 | 50+ | 1520+ | $675+ | ↑ +$42 |
* Based on Belco charges in effect at May 2014. Table offered as a guide only. Individual results may vary.
The current $33 facilities charge will remain unchanged for net metered customers. For example, customers who have invested in solar photovoltaic (PV) panels.
According to Belco, in 2012 the 'average' consumption per customer was 678.5 kWh per month. That equates to 22.3kWh per day.
Effective June 1, the facilities charge will increase for all residential customers using 12% or more electricity than that 'average' and will reduce for customers using at least one third less electricity than 'average'.
Belco's stated intention is that the burden added to larger, wealthier consumers, would be outweighed by the burden removed from the shoulders of low or fixed-income customers who tended to use the least electricity.
Greenrock objected to the proposal on the grounds that it was unnecessarily complicated, and would make it even more difficult for customers to understand their already-complex electricity bills. We offered a solution to make the Facilities Charge method of calculation easier to understand, which would in turn help empower customers to conserve electricity and save money, while still meeting Belco's stated objectives. In their approval filing, the Energy Commission acknowledged the Greenrock response -- although they never contacted us directly -- but they did not state any reasons for discounting it.
The Energy Commission referred to the revised charge structure as a tiered social benefit.
Related documents:
- Belco proposal, 6 Mar 2014
- Greenrock response, 25 Mar 2014
- Bermuda Engineering and Bermuda Alternate Energy joint response, 31 Mar 2014
- Energy Commission approval, 2 May 2014
Related Local Media Coverage:
- Belco explains facilities charge on household bills - Royal Gazette, 22-Jan-2013
- BELCO Proposes Plan to Cut Costs - Belco, 4-Mar-2014
- BELCO Fee Changes To Take Effect June 1st - Bernews, 21-May-2014
- BELCO: New facilities charge provides no additional revenue (Update) - Bermuda Sun, 21-May-2014
- BELCO: No Additional Revenue From Changes - Bernews, 22-May-2014
