Government orders have come to the island’s electricity and communications manager directing it to explore “potential cost savings and efficiencies” for the island’s energy supply.

Alexa Lightbourne, the Minister of Home Affairs, published a directive calling for the Regulatory Authority of Bermuda to consider different levels of billing for consumers based on their extent of reliance on the island’s electricity grid — and to shore up its consumer protection and education.

The three-page document, published in the Official Gazette, echoed comments in March from Ms Lightbourne on reining in the island’s rising costs.

David Burt, the Premier, told The Royal Gazettethat same month that promoting affordability would be a top priority for the home affairs ministry.

Although the RA is an independent body under law, Ms Lightbourne’s directives, published online yesterday, invoked Section 4 of the Regulatory Authority Act 2011, which grants the minister responsible for the authority to “issue ministerial declarations that establish policies for a regulated industry sector”.

The document’s publication came as the RA, in its newsletter for the first quarter of 2025, highlighted its own work in saving consumers “approximately $90 million from revenue allowance sought by Belco between 2020 and 2024”.

The revenue allowance reflects the electricity provider’s calculation of what it can charge for providing service to its customers and recovering electricity production costs. That allowance is subject to the regulator’s approval.

The RA newsletter highlighted its legal battle with Belco over its rejection of the utility’s request for a rate increase — which the regulator ultimately won in court in February 2024.

Higher electricity rates, driven by fluctuating global oil prices, have angered consumers in recent years — to the point of public demonstrations outside Belco headquarters on Serpentine Road, Pembroke.

The issue has also pitted the Government against the independent regulator.

In 2023, Walter Roban, who was Ms Lightbourne’s predecessor as home affairs minister, threatened legal action against the RA for approving higher Belco rates, and questioned whether the authority was “doing the right thing”.

The cause was taken up by the Progressive Labour Party in its latest Throne Speech, which pledged to “review and amend the Regulatory Authority’s mandate to oversee both regulated and unregulated sectors, ensuring transparent pricing, fair competition, enhanced consumer protection and the power to prevent unnecessary concentration of market power in key sectors”.

The March 2025 speech also vowed legislative changes that would “empower the Regulatory Authority to implement fairer pricing on retail electricity tariffs” — identical language to that used in the party’s most recent General Election platform.

Parts of Ms Lightbourne’s ministerial directive fell short of issuing direct orders to the regulator, though.

The RA was told to “reasonably consider” promoting “fairer and more transparent cost allocation” when it came to potentially unrolling differentiated tariffs for consumers based on their extent of reliance on the electricity grid — while the RA was “invited” to submit a report to the ministry outlining cost savings and efficiencies.

However, much of the directive, addressed to Mark Fields, the RA chairman, told the regulator what was expected under varying sections of the 2011 Act, such as instructions to draw up an annual report to the minister within 60 days.

The RA was further tasked with creating a “resource development plan” within 90 days to strengthen its operation team on matters such as renewable energy and “grid modernisation”.

It was also ordered to review the transmission, distribution and retail business model to “identify efficiencies that can be achieved”.

The regulator was told to “establish and evidence” a consumer protection and education programme, and to publish an annual consumer report by the end of 2025 listing consumer complaints received, along with “actions taken in support of its consumer protection mandate”.

The RA was asked for comment.