Minister of Energy Kerrie Symmonds has announced new steps to modernise the regulatory framework governing the Fair Trading Commission (FTC) in a bid to speed up decisions on hundreds of millions of dollars in renewable energy projects, while still protecting consumers.
Speaking at the State of the Energy Sector national conversation, Symmonds said the government wants to reform the current regulatory system to make decisions faster, clearer and more predictable.
The minister said that structural delays within the existing system have contributed to an estimated half a billion dollars in potential energy investments being tied up in local banks.
”Barbados does not suffer from a shortage of ideas or policy ambition. Our principal challenge really is in the implementation,” Symmonds said. “The country has developed a very sound strategic direction, but the implementation of these directions can be slowed down by fragmented responsibilities. They can be brought to a state of sluggishness by regulatory processes which are not nimble.”
To address these hurdles, the Ministry is looking at specific statutory and procedural tools under the Utility Regulation Act. The government plans to establish clear rules governing the exercise of ministerial exemption powers under Sections 37(4) and 37(5) of the Act.
These sections allow the minister, either on his own initiative or on the recommendation of the commission, to exempt certain matters from the usual regulatory requirements where it is considered to be in the public interest.
Symmonds emphasised that the proposed guidelines are designed to create a clear and transparent process when these powers are invoked, rather than override the authority of the independent regulator.
”This is not about displacing either the FTC or displacing interveners. I want to be particularly clear on that point,” Symmonds said.
“The establishment of this process is in no way intended to displace the Fair Trade Commission. It is a process that already exists in the legislation. What it does do is to ensure that the FTC will continue to perform the functions assigned to it under the law, with interveners continuing to have an opportunity to raise legitimate concerns… but that it happens in a more nimble and in a more accelerated way.”
Under the proposed process, if the minister seeks to exercise the exemption powers, the FTC may be asked to review the matter and provide an opinion within a specified timeframe. Interveners and affected stakeholders would also retain the opportunity to submit recommendations and concerns, either orally or in writing, before a final determination is communicated.
Symmonds said the Government’s approach responds directly to challenges faced by the FTC as it balances national policy goal – achieving 50 per cent renewable energy grid penetration by 2027– against complex technical and financial evaluations.
”The issue before us, therefore, is not whether the regulator should cease to regulate,” Symmonds said. “The issue is whether the regulatory framework as it now stands can operate with sufficient nimbleness, with sufficient speed, with sufficient predictability and clarity to allow national policy decisions to be translated into actual projects while maintaining appropriate protections for consumers and for other stakeholders.”
In addition to streamlining ministerial interventions, Government is exploring broader regulatory changes. These include setting defined timeframes for tariff decisions, modernising the rate-of-return framework, introducing performance-based regulatory approaches, and implementing dedicated mechanisms such as a clean energy transition rider to address cost recovery transparently.
Symmonds said coordination between Government agencies has also been formalised through a dedicated committee comprising representatives from the Ministry of Energy and the FTC The committee is tasked with strengthening inter-agency communication, improving operational execution, and breaking down barriers that slow policy work.
”Put simply, we are seeking to remove unnecessary procedural uncertainty and not to remove any form of regulatory oversight,” Symmonds said.
“We must provide investors with certainty, and we have to maintain the independence and integrity of our regulatory institutions, and we must also ensure that the benefits of the transition are shared across our society.”
(RR)
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