The Regulatory Authority is seeking to increase fees on electricity providers and telecommunications companies to fund a $1 million-plus increase in its budget for the next financial year.

In its work plan consultation document for 2020-21, the RA estimates total expenditure at $7.43 million, up from $6.29 million in 2019-20.

Special projects in both electronic communications and electricity — the two industries the RA oversees — are the main drivers of the 18 per cent jump in expenditure.

These include the first phase of a pre-feasibility study of an offshore wind farm, as detailed in the Integrated Resource Plan, the RA’s blueprint for the future of Bermuda’s electricity supply. The study will be commissioned by the RA “to determine the level of offshore wind resource available together with the business case and the environmental impacts”.

A radio frequency study will feature on the electronic communications side, to determine whether cutting-edge technology, such as a 5G network, would be appropriate for Bermuda.

The independent regulator is funded by the fees its levies on the two industries and receives no funding from the Government.

To fund the increased budget, the RA proposes an increase in the Electronic Communications Regulatory Authority fee, to 1.9 per cent from 1.75 per cent.

On the electricity side, the RA suggests that the regulatory fee of $0.00475 per kilowatt hour that appears on Belco customers’ bills remain unchanged.

However, the regulator wants to increase levies on bulk electricity generators at varying levels depending on their scale and how the power is generated.

Utility-scale electricity generation providers like Belco, with more than 25 megawatts of installed capacity, would face an increase of $5,500 per megawatt — up to $6,500 from $1,000.

Renewable and waste-to-energy suppliers, with 0.5MW to 25MW of installed capacity would deal with a $500 increase to $2,000 per MW.

The plan adds: “The RA also recommends to the Minister of Home Affairs that there be no increase in the current level of Government authorisation fees imposed on the electronic communications and electricity industries under the Government Fees Act 1965, until the RA has completed a taxation review.”

The RA’s proposed budget for the electronic communications segment of its work is $3.76 million for 2020-21, up 8 per cent on 2019-20, while $3.75 million will be needed for the electricity budget, up 31 per cent.

In its work plan, the RA says it has 18 employees, led by Denton Williams, its chief executive officer, with three additional positions open.

The RA has submitted its work plan to the Ministry of Finance, seeking approval of its budget for the year.

The regulator is seeking public feedback on the work plan. The consultation period is open until October 31.

• A PDF copy of the full work plan document is attached to this webpage under the heading of Related Media. For more information or to submit feedback, visit the RA’s website at www.ra.bm