A directive issued by the home affairs minister to the watchdog for the electricity and communications sectors included “many” items already covered in its work, the organisation said yesterday.

The Regulatory Authority of Bermuda added that $90 million-worth of energy cost savings for bill payers demonstrated adherence to its mandate of consumer protection.

Its comments came after Alexa Lightbourne, the Minister of Home Affairs, was unmoved by a riposte from Wayne Caines, the president of Belco, who hinted at overreach in the wake of her ministerial directive to the RA this week.

Although the RA is an independent body under law, the directive 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”.

Parts of Ms Lightbourne’s missive fell short of issuing direct orders to the regulator.

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 regulator was “invited” to submit a report to the ministry outlining cost savings and efficiencies.

In response to the directive, the regulator said yesterday: “The RA welcomes dialogue and oversight.

“It is also essential that the public understands the legislative framework and operational guidelines within which the RA must function, ensuring decisions are grounded in law and driven by data.

“Many of the items outlined in the directive are already embedded in the RA’s ongoing work.

“To date, the RA has delivered approximately $90 million in energy cost savings for consumers, demonstrating its adherence to its mandate of consumer protection, while ensuring reliability standards are met.”

It also praised its “highly skilled, predominantly Bermudian workforce comprising lawyers, accountants, chartered engineers and other professionals with extensive experience” guiding its operations.

The authority added that while its annual reports awaited approval by the Auditor-General, it had “independently introduced a quarterly newsletter in the interim” for “timely public awareness and transparency”.

The RA said it upheld its responsibility under financial constraints that included “the absence of an approved budget for key initiatives, including the Integrated Resource Plan”.

It said it remained available to support government policy, as stated in a “formal response to the minister” on May 16, with a commitment to provide “accurate, complete and evidence-based information to help guide Bermuda’s future, particularly on matters within the RA’s statutory remit”.

Ms Lightbourne earlier pushed back against remarks from Mr Caines, who insisted that the authority ought to be “allowed to operate as originally intended — as an independent regulator free from government influence”.

Mr Caines also criticised the formation of an Energy Policy Steering Committee, announced by Ms Lightbourne in March, that did not include representation from either Belco or the RA.

He called the move “a troubling course of action for all of Bermuda” in a statement on Thursday.

Ms Lightbourne responded by emphasising her ministerial responsibility to residents and small businesses shouldering “high electricity costs in a volatile global economy”.

She said the directive, published on Wednesday in the Official Gazette, was “not issued lightly” but was based on “the mandate given by the people of Bermuda” to take action to cut energy costs.

Complaints about electricity prices have increased in recent years as global oil prices put pressure on Belco and the RA.

Ms Lightbourne said: “Belco’s call for regulatory independence cannot be selectively invoked when it suits corporate interests.

“The public should be reminded that the Regulatory Authority was created to serve the public interest, not to function as a shield against accountability or against evolving public policy objectives aligned to global standards.

“Technical expertise is vital but what is Mr Caines suggesting of the experience of the diverse group who have been selected?

“The public should be reminded that Belco has lost in court twice while trying to increase rates on Bermudians.”

She said the Government was “delivering economic justice”.

Ms Lightbourne added: “Bermuda cannot afford to maintain a status quo where consumers are told to wait for relief while monopoly providers prioritise capital recovery over equity.

“In the face of record inflation and cost pressures, the public has every right to expect both urgency and innovation in how our utilities are governed.”

She said the ministry rejected the assertion that excluding “vested energy providers” from the policy steering committee constituted a breach of fairness.

Ms Lightbourne added: “On the contrary, it protects it. As indicated directly to Belco, they will be consulted as they are a valued stakeholder. But that does not deter us from ensuring that long-term policy decisions are shaped by a diversity of voices.“

The minister called on the electricity company to “engage constructively” in the push for a cleaner and more affordable energy system for the island.

She said: “The ministry will not be deterred.”

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