Mr. Speaker, it gives me great pleasure to announce the commencement of the new LED initiative, with which this Government is giving back in quite a literal sense to the people of Bermuda. In July 2022, the Government announced the LED initiative as part of the $15,000,000 stimulus package, and now, we are delivering.
Mr. Speaker, this stimulus proposes to distribute an initial 150,000 LED light bulbs over the coming months to the Bermuda public. After this initial distribution, needs will be assessed at that point to determine whether a second phase of LEDs will be distributed, or another measure is implemented. First, we are targeting the most vulnerable, namely our seniors and our households with lower incomes. We will do that through identifying those households, initially through organizations, like the Bermuda Housing Corporation, Age Concern, and the Department of Financial Assistance. We will work through our local charities who assist families in need to ensure that we can get the bulbs into the hands of those whom the reduced power bills can benefit most.
Mr. Speaker, the past months have been spent in a thorough and rigorous procurement, ensuring the best value for money spent. The bulbs will come at a landed cost to Government of $1.59 each. We are also working, right now, on developing efficient ways for the public to reach out to us to let us know their level of need so that we can ensure this stimulus goes to them. And lastly, for all those, who are not seniors or in a lower income bracket, who still want to take measures to lower their energy expenditures, we will arrange for them to be able to collect their bulbs at a convenient location.
Mr. Speaker, we are bringing in enough bulbs in this phase so that each household can have four A19 types that are a mid-range colour rendition- because we all know that all LEDs are not created equal. A19 bulbs are the ‘typical’ light bulb that is most frequently used in lamps and task lighting, and the colour is a warm white, neither too ‘yellow’ nor too ‘blue’, but close to the colour of sunlight. In addition, the bulbs will be the ‘dimmable’ variety, so that they may be used in any fixture that suits an A19 bulb, and all bulbs are UL listed to ensure quality. For those who might not be aware, UL stands for ‘Underwriters Laboratories,’ who provide testing and approval for a wide variety of consumer goods to ensure quality and safety standards are met.
One might inquire, Mr. Speaker, as to why LEDs were targeted as the subject of this Ministry’s stimulus. The answer is clear when reflecting on the Department of Energy’s LED exchange programme of 2019, in which 12,500 LEDs were given to anyone bringing an old incandescent bulb in to participating retailers. Those 12,500 bulbs, a relatively small expenditure, saved in total up to seven million dollars over the life of the bulbs for consumers that would have otherwise been used to pay electricity bills.
Mr. Speaker, LEDs are for everyone, there is no instance where switching to LED lighting will not result in savings. A very simple measure of screwing in a light bulb produces significant savings. If we posit that a single 60-Watt equivalent LED is used for five hours each day, at our current kilowatt-hour prices, that equates to a savings of $37 per year. The normal life span of an LED is four to six years, and if we consider the most conservative length of time at four years, which will equate to a savings of $148 for each LED over its lifespan. For four bulbs, that savings is about $592 over their usable lifespans- for each household. Mr. Speaker, considering the combined total savings for all of the 150,000 bulbs adds up to a sum of twenty two million dollars, most of which will remain circulating in the local economy over the next four years, just from changing the light bulbs in your home.
Mr. Speaker, the benefit does not stop at just monetary savings. Each bulb does the right thing for the environment as well. A single LED, over the course of its life, saves about 240 kilograms of carbon dioxide from entering our atmosphere. Together, all of those LEDs will prevent thirty- six million kilograms of carbon dioxide emissions from being produced. To put that into context, it is the same as taking more than four thousand cars off the road.
Mr. Speaker, I am pleased that this initiative, simple as it may seem, satisfies all three pillars of sustainability. It helps our people, by reducing their energy bills. It helps our economy by keeping millions of dollars on-island instead of, quite literally, burning those dollars on electricity. Lastly, it helps our environment, demonstrating that small measures do add up, and that energy conservation is something we all can and should accomplish.
Mr. Speaker, this initiative, combined with payroll tax rebates, school uniform support, increases to Financial Assistance, reduction of vehicle licensing fees, freezing of gas prices, and elimination of duty on staple foods, are all examples of a government that is working to reduce the impact of a forty year high rate of global inflation in Bermuda.
Thank you, Mr. Speaker.