Minister & BELCO On RA, Energy Policy & More

Minister of Home Affairs Alexa Lightbourne and BELCO President Wayne Caines have both commentated on government policy regarding energy affordability and regulatory independence.

BELCO’s statement:

BELCO President Wayne Caines said: “BELCO has reviewed the Government’s recent directive to the Regulatory Authority of Bermuda regarding energy costs and consumer protection.

“As Bermuda’s primary electricity provider serving approximately 36,000 customers, BELCO understands the unique challenges of operating on a remote island without the ability to interconnect to other utility systems. We must be entirely self-reliant while balancing reliability, affordability, and sustainability in everything we do.

“It is essential that the Regulatory Authority [RA] be allowed to operate as originally intended—as an independent regulator free from government influence. The RA has the technical expertise and works to ensure decisions are made in the best interest of customers, ensuring reliable and cost-effective electricity through established regulatory processes. BELCO operates under a robust regulatory framework, governed by the RA, which oversees how BELCO deploys capital and determines the rates set for customers based on thorough technical and financial analysis. This regulatory framework must be allowed to function without political interference to maintain the integrity of rate-setting decisions and ensure they are based on sound engineering and economic principles rather than political considerations.

“Of particular concern is the government’s recent establishment of an Energy Policy Steering Committee that excludes representation from both the Regulatory Authority and BELCO. How can this be in the best interest of consumers, when all stakeholders are not being consulted on industry changes? This is a troubling course of action for all of Bermuda, as industry experts who possess the technical knowledge and operational experience necessary for sound energy policy decisions are not included in the process.

“BELCO has been working diligently to address rising energy costs through multiple strategic initiatives. While the government’s recent reduction in fuel tax has helped ease the burden on customers, we recognise the need to explore further cost-saving options. Our proposed Integrated Resource Plan [IRP] which was submitted to the RA in 2023 explores switching to Liquified Natural Gas as a more sustainable and cost-effective way to generate baseload power.

“Our ongoing operational excellence initiatives focus on streamlining business operations to reduce unnecessary complexity and costs. We are making strategic investments in digital tools and employee training to improve efficiency across our operations.

“Transparency and community education remain central to our approach. We are translating complex energy economics into accessible content and maintaining open communication about our rate structure and renewable options. BELCO has met with several stakeholders during the past few weeks to explain the measures we are taking to ensure reliable, cost-effective energy for all residents. BELCO has also committed to hosting a series of public townhall meetings beginning on June 23rd to discuss our initiatives and hear directly from customers. Registration details will be published next week.

“Despite challenging island conditions, BELCO consistently outperforms reliability benchmarks compared to other jurisdictions. Over the last 10 years, we have made significant infrastructure investments including replacing underground transmission cables, building the North Power Station, bringing online our Battery Energy Storage System, and implementing Advanced Metering Infrastructure [AMI]. Our technical expertise, island-specific knowledge, and track record of reliability during extreme events position us uniquely to lead Bermuda’s energy transition. Through our parent company’s global network, we have access to international best practices and comprehensive understanding of distributed energy resource integration. BELCO remains committed to making continued infrastructure investments in the best interest of our customers, but can only do so effectively in a regulatory environment that provides certainty and maintains the integrity of established governance frameworks.

“BELCO is committed to leading Bermuda’s energy transition responsibly while maintaining the independence necessary for effective utility operations. We will continue to work within the established regulatory framework to provide reliable electricity that is affordable and sustainable for all customers.”

Minister Alexa Lightbourne’s statement:

A Government spokesperson said, “The Minister of Home Affairs, the Hon. Alexa Lightbourne, JP, MP, issued the following in response to BELCO’s recent commentary regarding government policy on energy affordability and regulatory independence.”

Minister Lightbourne said, “As the Minister responsible for energy, my foremost obligation is to the people of Bermuda, families, seniors and small businesses, who continue to shoulder the burden of high electricity costs in a volatile global economy.

“This Government’s directive to the Regulatory Authority was not issued lightly, but it appreciates and moved on the mandate given by the people of Bermuda. The mandate was issued following consultation and feedback from the public who have demanded that the Government ensure that energy is more affordable.

“BELCO’s call for regulatory independence cannot be selectively invoked when it suits corporate interests.

“The public should be reminded that, the Regulatory Authority was created to serve the public interest not to function as a shield against accountability or against evolving public policy objectives aligned to global standards. Technical expertise is vital, but what is Mr. Caines suggesting of the experience of the diverse group who have been selected?

“The public should be reminded that Belco has lost in court twice while trying to increase rates on Bermudians.

“The government is focused on delivering economic justice.

“Bermuda cannot afford to maintain status quo where consumers are told to wait for relief while monopoly providers prioritise capital recovery over equity. In the face of record inflation and cost pressures the public has every right to expect both urgency and innovation in how our utilities are governed.

“The Ministry of Home Affairs rejects the notion that excluding vested energy providers from a policy steering committee compromises fairness. On the contrary it protects it. As indicated directly to BELCO, they will be consulted as they are a valued stakeholder.

“But that does not deter us from ensuring that long term policy decisions are shaped by a diversity of voices.

“We encourage BELCO to engage constructively. Bermudians deserve a 21st century energy system one that is cleaner more affordable and designed with the public’s needs at its heart.

“The Ministry will not be deterred.”

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