The Regulatory Authority of Bermuda is to take charge of the island’s fuel sector beginning on Monday.

The authority said the expansion into fuel regulation was in keeping with the Fuels Act 2022.

Home affairs minister Walter Roban said at the time that the legislation marked a “watershed moment” in fuel regulation on the island.

The addition of fuel to its portfolio was the third announcement this month from the RA for changes to take effect on January 1.

The regulator announced last week that the Fuel Adjustment Rate, which plays a role in the setting of electricity bills, would be cut at the start of 2024.

The RA issued a statement on Thursday signalling an increase to the Feed-in Tariff, reduced sharply at the same time as the FAR increased in October, effective January 1.

The tariff goes to generators of electricity, typically from solar power, who feed their excess energy into the island’s grid.

Legislators last year approved putting fuels under the purview of the independent authority given the RA’s record of effectively managing electronic communications, electricity, and more recently, submarine communications cables.

It means the RA will have say in determining more costs.

Other factors, such as fire safety and environmental health, are not included.

The RA called the latest strategic move “a noteworthy step in the organisation's commitment to regulatory oversight in Bermuda.

“This aligns with its mission to serve stakeholders through a proactive, innovative and responsive regulatory framework.

“The Fuel Act 2022, the guiding legislation for the regulation of fuels, outlines key objectives that underpin this endeavour.

“First, the RA aims to ensure a proper, adequate and continuous fuel supply.

“Second, the regulatory focus will be on fostering the safe, efficient, economical and environmentally responsible operation of the fuel sector to meet the highest standards.”

The RA said it had also committed to “securing the continuity of services over critical infrastructure in Bermuda by identifying and mitigating risks through an effective risk management strategy.

“The public can expect the RA to regulate the fuel sector to ensure the provision of fuel at reasonable prices, aligning with international standards while guaranteeing fair and reasonable returns for those in the fuel sector.”

The regulator said it would encourage investment in the fuel sector with a focus on promoting “fair competition, economic activity, and the long-term sustainability of fuel supplies, as stated within the Fuels Act 2022”.

The RA said its latest move would come with public consultation,

Beginning on January 1 and concluding on February 14, the consultation was said to offer the chance for “valuable input, feedback and insights from all interested parties on a fuel pricing methodology”.

Details on the coming round of public consultation, including how to participate, will be posted on the RA's website.

The group said it looked forward to “a collaborative effort in building a fair and stable regulatory environment for the fuel sector”.