The Regulatory Authority is proposing changes for the calculation of electricity rates, according to a statement issued yesterday.

The energy watchdog released a Retail Tariff Methodology Consultation document to solicit feedback from the public. The authority is proposing “cost-efficiency incentives alongside the traditional rate-of-return model, to promote affordable electricity prices to end users”, the statement said.

The power company would get an incentive to drive down cost and increase efficiency, with the benefits to be shared between the utility and its customers.

The move follows a public consultation in March on the method to set electricity retail tariffs.

Feedback has been considered, according to the statement, with the draft document going for final public consultation.

Responses are due by October 1. After consultation ends, the authority will issue a determination setting the methodology. The documents and the process for submitting a response are online.

Aaron Smith, the interim chief executive of the Regulatory Authority, said the island's first “robust regulatory environment” had been developed over two years, as required by the Electricity Act 2016. Mr Smith added: “The Retail Tariff Methodology sets the path for a future of certainty and accountability for Bermuda's electricity rates.

“This starts with the authority requiring licensees to show separation of accounting, so we could gain insight into the cost of electricity generation versus transmission and distribution.

“Now we are on the verge of implementing a well-considered economic model to right-price Bermuda's electricity rates for long-term transparency and increased efficiencies.”

An additional public consultation on calculating rates for small-scale renewable energy generation to be sold and fed back on to the grid has been extended by five days, with the deadline now falling on September 26. The authority has published on its newly designed website, www.rab.bm, both consultation documents, Retail Tariff Preliminary Report and Preliminary Decision and Order and Feed-in Tariff Methodology Preliminary Report and Preliminary Decision and Order — extended deadline.

Responses may be submitted by clicking the “submit” button on the page, rab.bm/electricity-public-consultations, then selecting the relevant consultation for response.