Walter Roban has threatened to take the independent Regulatory Authority of Bermuda to court after the body upheld an increase in rates leading to higher electricity prices.

The increase, brought by a rise in the Fuel Adjustment Rate attributed to higher oil prices globally, brought protesters out in front of Belco’s head office on Monday and was the subject of a broadside last Friday by Mr Roban, the home affairs minister, who holds responsibility for the authority.

At the time, Mr Roban emphasised the RA’s independence but said he would call upon the energy and telecommunications managing body to justify its methodology.

He added that news of the higher rates had felt like “a kick in the stomach” against the backdrop of the island’s high cost of living.

Yesterday, Mr Roban said: “Yesterday, I suggested to the RA a possible option for their consideration, which would bring some relief for a period of time following the increase of the FAR.

“I have since been informed that the RA has rejected any change to the provisional action, nor will it consider any other options, and it will stand by its original provisional decision on the FAR, as outlined on September 27.”

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The FAR increase is expected to ramp up residential electricity bills by 20 per cent.

Mr Roban did not specify what alternatives he had suggested to the authority.

However, with the RA standing its ground, Mr Roban said that “legal action must be considered to address this decision”.

He added: “This increase is not in the public's best interests and this decision does nothing but cause hardship.

“The ripple effect will be massive, stifling job growth and economic recovery, hitting seniors and hard-working families hardest and discouraging investment in tourism development at a critical time.”

It is not understood how or on what grounds the Government can take the RA to court and The Royal Gazette has asked the home affairs ministry for clarification.

During last Friday’s press conference, Mr Roban highlighted the independence of the authority.

He said: “The RA operates independently. We have no role in the process that they do in fulfilling their duties as the regulators of licensed entities.

“The law is very clear and you can go to the regulatory act and see the role of the minister. I cannot direct or interfere with the RA in their role of regulating any particular entity.

“That is against the law. If I do it I am breaking the law and I will never break the law.”

The Royal Gazette has also sent requests for comment to Belco and the Regulatory Authority.