Lower energy costs for consumers could be in the pipeline after Government pledged yesterday to open up the energy market to more competition.

And the move could also make the Island more attractive to outside investors by lowering the cost of doing business in Bermuda.

But a spokeswoman for BELCO — which currently enjoys a monopoly position on electricity power — urged caution in opening up the market.

She said: “Movements toward competition in the electric utility industry need to be undertaken very thoughtfully to avoid bad outcomes for reliability and price.

“BELCO intends to continue to work very closely with Government on these matters.”

Delivering the Government’s legislative programme for the new Parliamentary year in the Throne Speech, Governor George Fergusson said: “The high cost of energy is an important factor for residents and business alike and it is an issue that companies and developers consider when looking at the Island as a potential domicile.

“Following the successful launch of the Regulatory Authority in January of 2013, the Ministry of Economic Development will move the regulation of energy to this independent body.

“This move will involve changes to the Energy Act 2009 and the Regulatory Authority Act 2011. One of the aims of this initiative is to help lower the cost of energy for consumers.

The Bermuda Energy Working Group has been formed and comprises a diverse group of energy professionals, independent engineers, non-governmental organisations and interested members of the public, working in collaboration to provide advice and guidance to the Department of Energy.

“One of their primary tasks is to develop equitable interconnection agreements for independent power producers to contribute to the production of electricity, a development that can lead to price competition, diversified energy production, increased use of renewable energy sources and the opportunity for lower-cost fuels such as natural gas.”

The BELCO spokeswoman said: “BELCO is aware of all of these matters and is actively participating and working with Government on these topics.”

The Department of Energy was asked for comment yesterday, but had not responded by press time.