Column: Nesbitt On Electricity, Billing & More

[Opinion column written by the FDM's Ricardo Nesbitt]

If you’ve noticed your BELCO bill creeping up again, you’re not alone. Another fuel adjustment rate increase has been approved, adding more pressure to households and businesses already struggling to keep up.

Global fuel prices have actually dropped over the last year. Diesel is cheaper. Heavy fuel oil is cheaper. Crude oil hasn’t gone up. So why are our electricity bills still rising?

Since BELCO was taken over by a Canadian parent company, we’ve seen a pattern. The company has pushed for tens of millions of dollars in new revenue in just a few years. Their own filings show they’re not just covering costs. They’re actively targeting high profit margins. They’ve set specific return goals, and when those margins aren’t met, they apply to increase our bills.

The North Power Station, opened in 2020, is expected to operate for another 20 to 30 years. So, fossil fuels aren’t going anywhere anytime soon. But we do have options. The engines at that plant are already capable of being converted to liquefied natural gas [LNG], a cleaner and more cost-effective fuel.

LNG is the least costly option of all fuels and technologies studied in the latest Integrated Resource Plan [IRP]. It outperforms other fuels in cost, emissions, and reliability. The Bahamas has already begun transitioning to LNG and is projected to save its people $50 million per year.

Bermuda could do the same. LNG can lower bills now and give us room to build renewable infrastructure gradually and strategically. It builds a bridge between today’s reality and tomorrow’s ambition.

We should also be looking at smarter billing structures, like time-of-use pricing that rewards customers for shifting their energy use to off-peak hours. That could ease strain on the grid and make electricity more affordable.

If the Government truly wants to reduce costs, it must allow competition. Granting bulk generation licenses would encourage innovation, support microgrids and distributed energy, and reduce our dependence on a single provider.

The Regulatory Authority exists to protect the public interest. Its mandate includes promoting competition, innovation, and cost-effective energy solutions. Opening the door to new generators and technologies is a necessary step in that direction.

We’re not unreasonable. We know things cost money. But we also know when something isn’t adding up.

We deserve better. And we must be the ones to make it happen.

- Ricardo Nesbitt, FDM Candidate for Pembroke Central – Constituency 17

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