Power firm Belco has given Government’s new electricity sector policy its cautious backing.

The news came after Government on Friday said it wanted high-quality, low cost power services — as well as methods that were kind to the environment, secure and came from a mix of production methods.

Minister of Economic Development Dr Grant Gibbons also told MPs that the existing Regulatory Authority, which at present looks after telecoms, would act as a watchdog as the industry moves away from a Belco monopoly.

And Dr Gibbons said that Government was still considering whether liquefied natural gas (LNG) could be used as a cheaper and clearer alternative to fuel oil to generate power.

He added that Belco — which owns the national grid — would also become the sole buyer of power from all generators and would have to have a “non-discriminatory” policy towards independent suppliers.

A spokeswoman for Belco said: “Government engaged various stakeholders, including Belco, in a consultative process to reform the energy sector when developing the national electricity sector policy.

“We look forward to ongoing dialogue with Government about aspects of the policy, including Belco’s role as the owner and operator of the Island’s electric grid and, therefore, the sole purchaser of energy coming into the network from multiple sources.”

She added: ”We support Government’s development of clean energy goals and the establishment of a Regulatory Authority to oversee Bermuda’s energy industry, including all independent power producers.”

Belco has said that it hoped to make a $170 million switch over from expensive oil-based generation to liquefied natural gas (LNG) by 2019.

Dr Gibbons said that LNG deserved “serious consideration” as a replacement for diesel and fuel oil.

But he added: “There are still many issues to be considered and we are in the process of securing the necessary expertise to assist with that analysis.”

He said, however, that further discussions on LNG would lead to initial findings being published before the end of the year.

Belco has 17 generators, of which five are combustion turbines and 12 reciprocating engines, which work like diesel engines.

Most could be converted to run on LNG — but the oldest ones, which are around 30 years old and already inefficient by modern standards, could not.

The firm has said LNG could be shipped in from the US, stored at a purpose-built terminal where it would be turned back into gas and then piped to Belco’s Pembroke plant.

Belco is planning to submit its Integrated Resource Plan (IRP), its own vision of the future of Bermuda’s electricity supply, to Government within weeks.