As Saint Lucians grapple with high energy costs, the proposed Electricity Act has sparked heated debate. It exposes a fundamental conflict: will the proposed changes serve the public interest or continue to prioritise the interests of LUCELEC? For years, the legislative process has been sluggish, with the nine-year-old Electricity Services Act Amendment and National Utility Regulatory Commission (NURC) Act still awaiting the creation of regulations. This is largely due to a hesitance by government officials to confront the difficult decisions necessary for true reform. During this time, LUCELEC has used its significant influence to shape proposed legislation with the primary aim of preserving and strengthening its powerful monopoly status.

Despite having a decade to adapt to a more competitive environment since electricity generation was separated from its monopoly, LUCELEC has instead fortified barriers to diversified energy investment. This continues to hinder Saint Lucian households and businesses that are prepared to make swift investments in solar to reduce their electricity burden and accelerate progress.

LUCELEC raises concerns that adding more solar PV to the grid will cause blackouts and instability. This is not true. We already have the technologies necessary to maintain grid stability with high levels of solar integration. Another misconception among legislators, perpetuated by LUCELEC, is that the rise in solar users will lead to higher electricity prices for others. This argument overlooks the benefits of solar to the grid—reduced peak demand, lower infrastructure needs, and decreased utility generation costs.

In this context, there are growing fears that the proposed law could perpetuate systemic inequities by protecting outdated utility interests at the expense of Saint Lucians and the very investments that would empower citizens and create jobs. It’s time to democratize the energy sector and ensure that new laws and regulations will truly serve the public interest.

To modernize the sector and support a transition to renewable energy, the Electricity Act must be flexible and future-ready. The law should move away from rigid rules, allowing for regular updates and adaptation to new technologies and industry trends, and thereby preventing the monopolistic mistakes of the past.

The vital nature of electricity to our nation is clear. As a starting point, we require well-thought-out laws and regulations that accurately capture national intent and are subject to parliamentary oversight. Given the technical complexity of the sector, parliament may find it prudent to establish a dedicated, rounded committee to advise on the proposed laws and regulations. Furthermore, regulations not subject to parliamentary approval, such as those made by a minister, must be minimized to protect the national interest from undue utility influence and ensure a transparent process open to all citizens. Additionally, the regulator and the regulated entity must be distinctly separate from each other. The current arrangement, where LUCELEC is listed as an affiliate of the NURC, is unacceptable and constitutes clear regulatory capture by the utility. This must not be allowed to persist if we are to preserve the integrity and future security of our nation's energy sector.

The NURC should be made truly independent, with sufficient funding and technical capacity to enforce regulations. Funding for the NURC should come from government dividend payouts from their shares of the Utility. Technical compliance for renewable energy systems should remain the responsibility of a well-resourced electrical department. Given the sector’s dynamic nature, periodic updates to laws and regulations should be led by the government, supported by an impartial, expert body that provides evidence-based recommendations reflecting industry trends and aligning with the national vision. LUCELEC should only ensure grid code compliance, interconnections of renewable energy systems, and provide necessary technical and operational information to policymakers.

Ultimately, the law must support competition and value producers, be they small householders or larger utility scale entities as equal partners.

Any new law must align with current government concessions to support the adoption of solar energy. The criminalisation of self-generation in the draft Electricity Act undermines our national intent to use free sunshine and exposes pitfalls if the bill passes. A fair, tiered compensation system for energy sent back to the grid should be based on solar PV system size and the cost at which it generates electricity, with a reasonable profit. This approach has proven effective in places like South Australia, the UK, and Hawaii—an island nation like ours.

These reforms will foster a dynamic, efficient, and inclusive electricity sector, lowering costs and boosting clean energy and innovation.

Saint Lucia faces an important choice. The Electricity Act could either keep us tied to high costs and deeper dependence, or help us move toward a cleaner, fairer energy future. The proposed Act needs fundamental changes. Although this is urgent, we should take the time to create strong, effective laws—history has shown that the government rarely updates laws once they are passed. We do not need drastic steps to fix the Act, but we must avoid entrenching LUCELEC’s monopoly. We need clear laws and regulations, an empowered and independent regulator, and rules that protect citizens' rights to generate and use their own energy. The Minister of Infrastructure should take strong action on behalf of ALL SAINT LUCIANS. Our renewable energy resources should benefit everyone.