The Ministry of Home Affairs wishes to clarify the government taxes related to the fuel adjustment rate (FAR).
The Ministry can advise that there has been no fuel tax increase by the Government for many years, and at present, only 4 cents of the FAR represents government taxes. Also, under law, the Government has no direct involvement in setting the rate of the FAR.
Minister of Home Affairs Walter Roban said, "Notwithstanding the minimal impact government taxes have on the fuel price, I am deeply concerned by the almost 50% increase in the fuel adjustment rate and its impact on families' electricity bills. We live in challenging times, and inflationary pressures and higher living costs only reinforce the consensus that pursuing renewable energy options is vital to Bermuda's future."
Editor's Note:
Subject to wholesale fuel prices in the market, BELCO submits their information to the RA, who sets the FAR after evaluating the costs submitted by BELCO. To be clear, there is no profit allowed to the utility through the FAR.