Government is allocating $500,000 towards the take-up of domestic renewable energy on the Island.

In her Budget speech, Deputy Premier and Finance Minister Paula Cox announced the sum would "create incentives to encourage the use of small-scale alternative and renewable electricity generating systems".

Last February Minister of Energy Terry Lister said he wanted to see a Green Paper on a National Energy Policy "within a year".

That has not happened, but the Minister is expected to table the Green Paper before Cabinet and the public shortly.

Ms Cox announced yesterday that the development of a National Energy Policy was among the Ministry's priorities for the forthcoming year.

The Department is to receive a total budget of $1.5 million, of which $250,000 will pay for consultants over the coming year.

Mr. Lister said: "Alternative energy sources and policies are integral in the sustainability of not only our community, but the world.

"Within the policy will be two key objectives: the reduction of our reliance on the use of imported fossil fuels and the development of a regulatory environment designed to encourage the adoption of alternate and renewable sources of energy."

He said: "The Department, using the Energy Green Paper as a reference, will consult with all sectors of the community and will also seek advice from industry experts for assistance in developing a comprehensive policy framework.

'This framework will result in the creation of an energy regulatory regime for Bermuda.

"During the year the Department will also work in collaboration with other Ministries to implement various incentive schemes to raise the public's awareness and to encourage the adoption and use of energy efficient products."

Government wants to work with Belco in encouraging take-up of domestic renewables such as micro-wind turbines, solar and Photovoltaic (PV) panels. It also wants to encourage more energy conservation across the community.

The total 2009-2010 budget for the Ministry of Energy, Telecommunications and E-Commerce is $32 million.

Ms Cox said: "The Ministry's primary objectives for the year will be the development of a National Energy Policy, the continuing reform of the telecommunications regulatory environment, the development of a data privacy and protection policy framework, the launch of a five-year initiative to modernise the postal sector and the redevelopment of the Government's information technology infrastructure."

In the Department of Telecommunications, $418,000 – a fifth of its budget, has been set aside for consultancy fees.

Ms Cox said these consultancy services would "help to reshape Bermuda's telecommunications regulatory regime including the creation of an independent Regulatory Authority and the replacement of the current segmented licence structure by a single telecommunications licence framework".

Work began last year on activities to implement the recently-announced Telecommunications Regulatory Reform Policy. It involves the creation of an independent Regulatory Authority and the restructuring of licences from three classes into one general Communications Licence, allowing companies to provide a full range of services. This is seen as necessary due to the growth of convergence technologies.

The independent Regulatory Authority is to be headed by a three-person Commission and up to nine full-time professional and administrative staff.

Government believes the Telecommunications Regulatory Reform Policy will lead to more competition across all sectors of the industry, resulting in improved products and lower prices for consumers.

Mr. Lister said: "The Regulatory Authority will be created as an independent entity, much like the Bermuda Monetary Authority and will have responsibility for implementing Government policy and administering the telecommunications industry.

"The change to the licence structure will result in the elimination of the existing segmented licenses, which were granted based on the type of service provided, to be replaced with a single communications licence that would be available to all existing and qualifying license holders."

People will also be allowed to keep their telephone numbers if they change their supplier.

Mr. Lister said: "The Department will also pursue other initiatives, such as the ability for the public to retain their phone numbers regardless of which service provider they may choose."

In yesterday's Budget, the Department of E-Commerce was also allocated $1.3 million.

Mr. Lister said it is to develop a data protection framework in line with international standards, "to regulate the security and handling of personal data by institutions, businesses, organisations and the Government".

The Information Technology (IT) Office will also continue its project to modernise Government's IT infrastructure.

Mr. Lister said: "The Department's primary objective for the next financial year is the creation of redundant data centres and the implementation of dual connectivity options to each of its critical locations."

In addition, the postal service is to get an overhaul, in line with Universal Postal Union (UPU) guidelines for governments seeking to modernise their services to meet 21st century demands.

The UPU is a specialist agency of the United Nations which sets rules for international mail exchanges. It has 191 member countries.

The Bermuda Post Office, with technical assistance from the UPU, has just completed a five-year Integrated Postal Reform and Development Plan (IPDP).

Mr. Lister said over the next year the Department will "identify and initiate those projects that will begin the transformation process for the postal sector in Bermuda".