RA: ‘Security Of Electricity Supply For Bermuda’

March 15, 2018 | 16 Comments

Aaron Smith Bermuda March 15 2018A decision to allow BELCO to replace ageing generators “was necessary for safety and the security of electricity supply for Bermuda,” the Regulatory Authority of Bermuda said today.

Last week it was announced that the Authority had issued an order for the replacement of aged generation assets permitting BELCO to start installation of four new dual-fuel generators, capable of a combined output of 56 megawatts. The Authority also gave approval to a system for battery energy storage.

Authority Interim Chief Executive Aaron Smith [pictured] said: “Much of BELCO’s current generation capacity has gone beyond its normal life expectancy and this had become a critical issue in terms of safety as well as the security of supply for Bermuda, which were major factors in our decision to approve this replacement generation.”

The Authority is currently in the process of developing an Integrated Resource Plan [IRP] – a wide-ranging plan for the future of electricity supply in Bermuda. The IRP will be ready for approval later this year.

Mr. Smith added: “The decision to allow the new generators does not in any way pre-empt the IRP, which will take a comprehensive view of Bermuda’s energy system taking into account its needs and requirements. We expect a final plan to be ready later this year, after public consultation.”

The Authority has just embarked on consultation on the methodology used to decide the retail tariff for electricity – the formula for determining the rate that the consumer pays.

Mr. Smith added: “Until we finalize the methodology, which must take into account issues such as economic efficiency and affordable prices to end-users, it would be inappropriate to speculate on what the future tariff may be. The approval of the replacement of assets was not an approval for an increase in rates.

“Despite our approval for the new generators, there will be no decision on what the tariff will be until the methodology is set and a retail tariff review using that methodology has been completed.”

The retail tariff consultation document is available on the Authority’s website, www.rab.bm. Responses may be submitted by going to the “Consultations” drop down menu and selecting “Submit Your Response”. Comments should be submitted before 5pm, Bermuda time, on March 29, this year.

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Comments (16)

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  1. King Jammys says:

    How can the RA let Ascendant pay a dividend to its shareholders on 23 February 2018 and turn around and put this on the back of consumers?

  2. Basicaly says:

    So basically after Belco has been saying this for 5+ years your are approving the plan they had originally submitted. Good work RA & Govt.

    • agatha christie says:

      The issue was that belco had to be licensed first – once that happened (which was quite recently and was also a recent requirement) things started moving qucikly

      • Ok says:

        Well if they are anything like TCD then waiting 5 years for a license makes sense.

    • Hmmm says:

      lol…was thinking the same thing.

  3. Time Shall Tell says:

    & the monopoly marches on….

    • Real Deal says:

      not for me.. soooon I will be Freeeeeeeeee. there needs to be a paper written on the cost to do business in Bermuda on a pie chart i know labor and rent is a large piece of the pie but i wonder where electricity falls on that pie chart

    • Hmmm says:

      you are free to start your own power company. Apply for a license and go for it!

  4. clearasmud says:

    “A decision to allow BELCO to replace ageing generators “was necessary for safety and the security of electricity supply for Bermuda,” the Regulatory Authority of Bermuda said today.”

    Why would Belco need permission to replace ageing infrastructure?

  5. More to this one says:

    What organization would invests millions of dollars in assets before they have any idea of budgeted revenues? If the RTA haven’t even determined what the retail tariff will be or the methodology how could BELCO calculate a return on investment. I understand that there is another organzation wanting to provide electricity to Bermuda via some sort of a proposed buyout of BELCO where we become the model for the world in terms of a greener and more efficient technology. Is the Canadian CEO of BELCO not interested? Why? BELCO instead is going to build new generators? To close the market? There has to be more to this story and I would be interested to know the details because this doesn’t make sense.

  6. Puma says:

    What about “,the cube”?…this system runs all of Google.
    Are wind turbines coming?
    And what of hydro electric.

  7. northrock says:

    “And what of hydro electric.”

    what of it?

    • Zevon says:

      We could create power out of all those waterfalls we have here.

      • northrock says:

        …and dam those rivers, create a reservoir and have unlimited Hydro electric power :)

  8. Abg says:

    What a joke

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