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Belco backs independent energy authority proposal

The Island's energy supplier Belco is backing calls for an independent energy authority.However, a regulatory framework of rules and standards for all utilities is needed first, according to the power company.Linda Smith, Belco spokeswoman, explained: "A regulatory framework lays down all aspects of the utility business such as investment, reliability, environmental standards and safety."

The Island's energy supplier Belco is backing calls for an independent energy authority.

However, a regulatory framework of rules and standards for all utilities is needed first, according to the power company.

Linda Smith, Belco spokeswoman, explained: "A regulatory framework lays down all aspects of the utility business such as investment, reliability, environmental standards and safety."

Belco already adheres to laws and regulations set by the Price Control Commission and Governmental authorities in such areas as environment, planning and water.

But Ms Smith said with the advent of a Green Paper on a National Energy Policy and the likely increase of renewable supply sources on the Island, standard rules and regulations for all utilities needed to be set forth.

She said: "Belco has always taken the responsibility for planning the supply in Bermuda and determining when there needs to be investment in order to continue reliability of supply.

"With the Green Paper and as we move into a regulatory environment, that becomes not only a Governmental responsibility but a shared responsibility. This needs to have the input and support of stakeholders across the board, and therefore speaks to an independent energy authority.

"We have always said there should be such an authority. We are of the belief that there needs to be a cohesive, cooperative partnership with the right representation from a technical, financial, environmental and consumer focus, so you get all this input into overall energy planning.

"But there needs to be a regulatory framework for it to function, something which guides what the processes will be in order to achieve these objectives."

Ms Smith said: "These regulations will be set in place by Government to oversee all aspects of the utility industry, and should aim to facilitate a reliable, secure and sustainable energy supply for the community.

"Supply should also balance challenges as they relate to economics, the environment and consumer protection. A regulatory structure would also provide the guidelines to facilitate and encourage investment in infrastructure.

"There are opportunities for synergies in improving Bermuda's infrastructure but we need a cohesive view as to what the objective is, going forward.

"And we need to make sure the economies of the overall energy plan make sense."

Ms Smith was responding to calls by sustainable development group Greenrock for an independent energy authority free of commercial interest or politics.

Andrew Vaucrosson, Greenrock president, said an Independent Energy Conservation/Waste Authority would ensure consumers' interests were paramount, so protecting those on lower incomes, and would bring transparency and accountability among suppliers and contracts.

"IECWA would look at ways to improve energy efficiency and conservation, to reduce our energy demand," Mr. Vaucrosson told The Royal Gazette on Thursday.

"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."

Mr. Vaucrosson said such a body would create a "bridge" between Government and the energy suppliers, taking Government policy and mapping out short and long-term solutions to the Island's energy needs.