RA proposes 50% budget increase, less consultation
In the weeks leading up to the Budget, the Regulatory Authority of Bermuda has asked the Government to avoid hiking fees on regulated sectors.
It also wants to reduce the amount of consultation required.
The RA’s Preliminary Report, Work Plan and Budget for fiscal 2024-25 has been published to their web site, projecting a more than 50 per cent increase in the budget.
The document is required under the 2011 Regulatory Authority Act together with an annual public consultation in advance of the finalised work plan.
This consultation ends on January 31 to cover the year April 1, 2024 through March 31, 2025, and involves the year’s work plan and proposed budget.
The anticipated 51 per cent increase in revenues is attributed to a rise in the Regulatory Authority Fees relating to Belco and licensed telecommunications providers, together with a new fee for the fuel sector.
The consultative document states: “As an independent regulator, the RA is funded from sectoral fees. Therefore, it is important that the relevant fees are set at the necessary levels that will allow the RA to meet its planned expenditures. Further, the RA has attempted to set fees according to the cost-drivers of such fees.
“Based on the rationale stated above, the RA also proposes to recommend to the Minister of Home Affairs that there should be no increase in the current level of government authorisation fees imposed on the electronic communications and electricity sectors under the Government Fees Act 1965.
“Further, the RA proposes a reduction in consultation activities and consequential costs to limit increases in RA costs.”
The RA wants the Minister of Finance to approve the RA’s proposed budget of $9,282,000 for total revenues (an increase of 51 per cent) and of total expenditure of $9,262,486 (an increase of 52 per cent) for the fiscal year 2024-25.
It wants the Home Affairs Minister to approve the new Regulatory Authority Fees payable by licensees to fund the proposed budget.
The RA is working on a new Integrated Resource Plan to set Bermuda’s future electricity strategy.
It has also moved into phase three of its Wind Feasibility Study and will host public consultation before establishing a suitable site. An Expression of Interest for the offshore wind development has also commenced.
The RA advanced discussion with various stakeholders to secure sites for potential onshore utility-scale solar PV.
It engaged in advanced discussions with various stakeholders to secure a site that would be appropriate for large-scale floating solar PV and launched the expressions of interest for floating solar, responses for which are now being evaluated.
The Market Review of the Electronic Communications sector is to be completed this summer to assess the state of power provided in the market and make any necessary recommendations for change.
In telecommunications, a consultation could lead to recommendations for updates to the minister’s 2014 Spectrum Policy. This would include a potential update to the High Demand Spectrum frequencies based on the significant shift in usage over the past 12 to18 months with the advent of 5G.
• For the full RA Preliminary Report Work Plan and Budget, see Related Media
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