Electricity regulation is relatively new for Bermuda. In October 2016 the Electricity Act was enabled and the Regulatory Authority began to draft the guidelines and regulations for the sector.
A year later, in October 2017, two organisations were issued a license to transmit, distribute and sell electricity. They are Bermuda Electric Light Company (BELCO) and the Tynes Bay Waste-to-Energy facility; both are TD&R (Transmission, Distribution and Retail) licensees.
One month after being issued a license, BELCO was notified by the Authority to submit an initial proposal for Bermuda’s future electricity plan, known in the industry as an Integrated Resource Plan, or IRP. This is Bermuda’s first electricity plan and it determines the way forward for the next 20 years.
The IRP will be reviewed every 3 to 5 years by the Regulatory Authority through a consultative process to keep the plan current as technologies and public policy evolves.
Why would the electricity plan for Bermuda start with a proposal from the primary electricity provider? The legislation requires it – refer to the Electricity Act 2016. It makes sense since the IRP will include important data about the sector such a s consumer demand, capacity of current infrastructure, production costs and more, and the primary provider is the best placed to provide accurate detailed business data.
Click here to view an informative electricity sector informational flyer.