Greenrock calls for independent energy authority to protect consumer's interests
An independent energy authority is the best way forward for the Island, according to sustainable development group Greenrock.
As the Department of Energy finalises its Green Paper on a National Energy Policy to submit to Cabinet, Greenrock believes an independent authority is the best option.
Andrew Vaucrosson, the group's president, said such an organisation would remain free of political or financial influence. It would ensure consumers' interests were paramount, so protecting those on lower incomes, and would also bring transparency and accountability among suppliers and contracts.
Greenrock also feels a natural extension of the body would be the incorporation of waste management – and is proposing a joint independent energy conservation and waste authority.
"We feel the Independent Energy Conservation/Waste Authority (IECWA) would be a better organisation to come up with viable solutions for Bermuda, considering that it is neutral when it comes to supplying energy or politics," said Mr. Vaucrosson. "IECWA would look at ways to improve energy efficiency and conservation, to reduce our energy demand.
"In Bermuda we have a single energy supplier. Belco is naturally biased since it is a for-profit business and is responsible to its shareholders. But energy is a necessity, it is as important as food and shelter, so there has to be some social control of that."
He said: "Belco's (new) strategy of balancing renewables with existing energy sources is admirable but comes only after external pressure. An independent entity with the interests of the Island needs to be formed which will work with independent energy suppliers like Belco, to map out a viable solution for short- and long-term scenarios.
"Once energy becomes controlled and expensive you are affecting the social standard of those people who can't afford it, so there has to be a social responsibility there."
Mr. Vaucrosson said an independent authority would also create a "bridge" between the Government creating the policy, and the energy suppliers.
"If you look at California, Japan, Canada and the UK, when there were changes to their energy policies or the deregulation of supply, each went through a lot of pain and adjustment before they were able to reach a successful solution. In some instances, the execution of energy policy was left in the hands of Government or with the utility, and in both cases, this model failed.
"The key here is 'independent'. An independent authority would look at how you bridge the two, while also examining the social issues.
"Plus, with the recent surge in renewable energy sources (such as solar, wind and geothermal), more and more think tanks, such as the Centre for Energy and Environmental Policy (CEEP), are stating independent bodies are a better solution for providing long-term governance, guidance and financial ingenuity."
Examples around the world include the Energy Saving Trust (UK), Public Interest Energy Research (California), Energy Efficiency and Conservation Authority (New Zealand), and the Ontario Power Authority (Canada).
Greenrock says Bermuda is now ready for such a body, which would examine alternative energy sources for electricity, fuel and transport. It would also look at how energy is distributed across the Island and how the infrastructure could be improved.
Mr. Vaucrosson said that as new renewable energy suppliers come on board, Belco could ultimately lose revenue. The independent authority however, would also be able to assist the power company in recouping some of its losses. By setting up a multi-source grid, Belco could end up buying back surplus electricity from domestic homes powered by renewables.
"An independent authority can look at how to create a multi-source system to help Belco offset its losses," said Mr. Vaucrosson.
The authority would also look at the best ways of financing any changes in Bermuda's energy production and supply, such as issuing bonds to raise funds, or via tax credits.
"The independence of this authority would also improve the way and range of things we currently recycle and dispose of as waste," said Mr. Vaucrosson.
"In Bermuda energy and waste go hand in hand. We rely on waste energy through our incinerator. Plus, more can be done to use it when it comes to alternative fuel production, such as biomass and biofuels."
He gave seaweed as an example. Seaweed on our beaches could be used to produce biomass energy for generating electricity.
"We could also take some of the (horticultural) waste at Marsh Folly and compress it into pellets, to drive energy," said Mr. Vaucrosson. "The authority could do this kind of project."
He said consumer e-waste, such as computers, cell phones and plasma TVs, was another area which needed more attention, as such items contain toxic substances.
"An independent authority would also provide more transparency in the way contracts are awarded and vetted," said Mr. Vaucrosson. "It would create more competition, and prevent smaller companies from being muscled out by those with a bigger pocketbook. A waste authority would also work on education, extending the recycling programme, and on ensuring transparency of services."
He said the IECWA would consist of "a combination of technical people, representatives from Government and power providers, and from someone like ourselves (Greenrock), to provide a little bit more community-based focus".
The authority would likely have a board and a structure of committees specialising in such areas as technical, financial and environmental.
Mr. Vaucrosson said: "Government's energy plan is critical for Bermuda. When it comes to overall inflation and the cost of living in Bermuda, the cost of energy has a huge impact, especially when it comes to our supply of electricity.
"By looking at more renewable forms of energy, not only are we helping to reduce our dependency on foreign oil but also the emissions that contribute to the climate change crisis."
He added: "The challenge is to come up with meaningful solutions for the short- and long-term, that the general public can see will help them socially and economically, and which will benefit Bermuda's environment. The IECWA would take Government policy and drive home the message, doing this consistently no matter which political party was in power."