OBA: when will the national energy policy be finalised?
The shadow home affairs minister has questioned when Bermuda’s national energy policy will be finalised.
Dwayne Robinson acknowledged that the Government’s fuel duty relief can soften the impact of power bill hikes but insisted “it cannot truly protect the consumers from increased costs”.
The MP said that the One Bermuda Alliance welcomed the Government’s “pivot” from previously steep renewable energy targets. But he pointed out that solar energy adoption had earlier been encouraged by the Government, only for solar customers to now expect higher bills than before uptake.
After a two-week extension, the consultation on the draft National Electricity Sector Policy ended on May 21.
In a statement to media, Mr Robinson said: “The draft NESP 2026 was said to be ‘nearly final’ in a column written by the Minister of Home Affairs. When will this plan be finalised?
“The recent increase of the Fuel Adjustment Rate by $2.17 shows that though the Government can dull the impact with its fuel duty relief, which is supported by the OBA, it cannot truly protect the consumers from increased costs.
“More must be done on a structural level to ensure affordability and sustainability of our energy sector going forward.”
The Regulatory Authority avoided commenting on whether recently amended legislation hands too much power to the home affairs minister in deciding the island’s future energy mix.
The Royal Gazette contacted the electricity sector’s watchdog after the passing last month of the Electricity Amendment Act, which would allow the minister powers to suspend the integrated resource planning process in favour of public interest.
The Integrated Resource Plan is a blueprint for the island’s future energy generation options.
Wayne Caines, the president of Belco, came out against the passing of the Act at the time, suggesting it could risk the affordability and reliability of fuel in Bermuda.
The RA’s remit includes protecting consumers through the affordability and reliability of electricity supply.
The Gazette asked the RA whether it believed the legislation gave the minister too much power, and the RA and Belco too little.
Also asked was whether there was a risk, as suggested by Mr Caines, that “interrupting the very process designed to protect customers puts the affordability and reliability that Bermuda requires at risk”.
A spokesman for the RA, which is led by chief executive Richard Ambrosio, responded: “The RA acknowledges the passage of the Electricity Amendment Act 2026.
“As the independent regulator of Bermuda's electricity sector, the RA remains focused on its statutory responsibilities, including supporting long-term investment in critical energy infrastructure, protecting consumers and ensuring the delivery of resilient, reliable and fairly priced electricity for the island.”
A new electricity rate structure announced by Belco and approved by the Regulatory Authority resulted in an increase in facilities charges for customers with rooftop solar.
The NESP stated that the Government plans to abandon its target for the island to produce 85 per cent of its energy from renewable sources by 2035 and instead expects to produce 93 per cent from fossil fuels in 2030.
Mr Robinson added: “We welcome the minister’s pivot from her predecessor’s steep renewable targets to a more reasonable transitional timeline.
“However, the recent fee structure implemented by Belco to provide greater transparency of its billing has caused backlash from Bermudians who have invested in solar energy.
“Though Belco has gone through great lengths to explain the change and has a thorough explanation on their website, many have reached out to my colleagues and me in outrage.
“They feel that they were led to invest in solar energy by the Government’s strong push towards renewable energy and given a raw deal by this new facility charge change.
“Some have said it will increase their bill to amounts higher than before they installed their solar panels.”
Mr Robinson asked how the move would affect the Government’s renewable targets and how it plans to ensure renewable energy is “supported and not discouraged”.
Ms Lightbourne noted earlier that in May last year, the ministry issued a directive to the Regulatory Authority for fairer, more transparent cost allocation.
She said last week: “To the concerns raised by solar providers, government policy is settled and consistent. Bermuda needs a growing renewable sector and a fair deal for the grid-reliant household that cannot install panels.
“Charges that reflect how each customer actually uses the grid serve that fairness.
“At the same time, solar customers have contended for years with a feed-in tariff held low by a flawed calculation at the outset.
“The public cannot be made to carry the cost of poor regulation or of mistakes that yield higher prices on them.
“Fair charges and fair compensation must move together.”
The Ministry of Home Affairs has been asked for comment.
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