GOVERNMENT has confirmed that it will move forward with a Royal Commission into the multi-million-dollar Bermuda Electric Light Company (Belco) fire and the island-wide blackout it caused last July.

An independent review of the incident was carried out by the electricity company last year but Premier Alex Scott said that the Government undertaking would dig a little deeper ? examining the situation as it impacted on the local community and not just the effect it had on Belco and its operations.

"It is our view that this event had a significant impact on the entire community of Bermuda," Mr. Scott said at a Cabinet press conference attended by several Government Ministers. "We believe that it is prudent to examine not just the cause of this event, but the full extent to which our island was impacted."

The Governor will appoint the Commission in the spring. To be comprised of local and overseas experts, it will be tasked with investigating the July 14 blaze that plunged Hamilton into darkness for two-and-a-half days and left some areas of the island without power for more than a week.

"This was a unique event," Mr. Scott said as he explained why Government believed it necessary to hold a second investigation.

"All the lines were up. Bermudians were waiting. But Belco was incapable of providing the energy that we needed. The inquiry is not going to be into Belco, whether they mismanaged themselves.

"The commissioners will obviously consider the event, consider the report about Belco, but how do you prepare for another event like that? So therefore you want qualified people to look at the island in general.

"I have met with the chief executive officer of Belco and they have agreed to give Government sight of Belco's report, recommendations and their strategic plan for the way forward. However, it is imperative that we consider all possible contingencies to ensure the least possible impact should a similar event occur in the future.

"Therefore, in the best interest of all Bermuda, the Government continues to meet with His Excellency the Governor to determine the way forward with a Commission of Inquiry."

The Premier said that the commissioners would consider the cause of the fire and alternate ways of directing power from the Serpentine Road-based plant to the rest of the island. It is also to examine the impact of the blackout on the Government, the hotel industry and the international business sector and consider different sources or locations of power.

"We anticipate the Commission will receive submissions from all sectors and will make recommendations in the best interest of Bermuda," he added. Contrary to published media reports, Mr. Scott said that Government had "never considered" nationalising the island's sole power plant and that "it was also not based on fact that Cabinet was divided on this issue".

Nor, he said, did the business community express any misgivings over the planned Royal Commission.

"The business community, the hoteliers and others (they are the ones) who want the Government to ensure that we can be assured of energy in the future," he said. "We had a very candid conversation with (Belco head Garry) Madeiros.

"He has always been most co-operative but we were most serious with him in our conversation and we pointed out to him the obvious ? his responsibility is the company, my responsibility is the country.

"And on this one, we had to look judiciously at whether an investigation just into Belco, an investigation just into the fire, an investigation just into the cause and the consequences at the company, was sufficient.

". . . we must come up with emergency alternative sources. They may be provided by Belco, they may be provided from Tynes Bay, they may be provided from elsewhere, they may be provided in the various hotels, they may be provided in the actual businesses themselves, I am not qualified to say.

"But I do think I am responsible for this country to find answers. That's why the inquiry goes forward. Not to penalise Belco, but to work with Belco. It's not an adversarial relationship that we're trying to set up.

"It is a constructive co-operation between partners. Belco works very hard to provide what Bermuda needs. Bermuda needs now to review that event both at the local level of Belco and at a national level for Bermuda."