BEL Explains Power Rate Increase as New Electricity Prices Take Effect

Belize Electricity Limited (BEL) has issued a public statement outlining the factors behind the recently approved electricity rate adjustment, pointing to rising power purchase costs, regional supply challenges, and delays in planned renewable energy projects.  In its December 31, 2025 release, BEL acknowledged the Final Decision of the Public Utilities Commission (PUC), which approved a $0.0337 per kilowatt-hour increase to the Mean Electricity Rate effective January 1, 2026. The company noted that the adjustment represents only partial recovery of costs it has incurred and expects to incur.  BEL disclosed that it had sought a higher increase of $0.0549 per kWh to offset an estimated $84.1 million gap between the cost of purchasing electricity and the revenues collected from customers between July 2023 and June 2026. According to the utility, those higher costs were driven by limited access to lower-cost regional energy, supply constraints affecting generation sources, prolonged heatwaves that increased demand, and delays in utility-scale solar and battery storage projects.  The company stated that the delayed renewable projects would have reduced dependence on higher-cost power purchases and lessened the need for a rate adjustment. BEL said it will continue operating under the approved rates while managing the remaining shortfall.  Looking ahead, BEL indicated it intends to work with the PUC and the Government of Belize on longer-term approaches to address electricity costs and system resilience. These discussions include possible changes to tariff structures, accelerated development of renewable energy and storage, and continued grid modernization, including the integration of rooftop solar systems.  BEL said it recognizes the impact of electricity costs on consumers and noted that maintaining system reliability remains a priority as Belize navigates ongoing regional energy pressures and climate-related challenges.