PUC Proposes Electricity Rate Hike as BEL Seeks Cost Recovery

The Public Utilities Commission (PUC) has proposed an increase in electricity rates, following a request by Belize Electricity Limited (BEL) to adjust its charges for 2025.  In a public notice issued today, the PUC said BEL had asked for an increase to the Mean Electricity Rate (MER) of point-zero-five-five-five cents per kilowatt hour. After reviewing the request, the Commission proposed a smaller increase of point-zero-three-three-three-seven cents per kilowatt hour, which would result in a new mean electricity rate of point-zero-four-four-two-seven cents per kilowatt hour.  The Commission stated that the proposed adjustment is aimed at addressing BEL’s financial challenges while allowing the company to recover the reasonable cost of providing electricity services.  At the same time, the PUC noted that it considered the impact on consumers, particularly social and residential customers below the GST threshold. Prime Minister Briceno spoke on this hike in electricity, saying it is a must due to the expenses incurred by BEL.

John Briceño, Prime Minister of Belize: “When it comes to the utilities, Madam Speaker, one of the things that the Honorable Member from Mesop did not put into his presentation with BWSL is that BWSL has an expansion program of about approximately over $135 million to expand water to our people, especially to poor people who need the service. And then somebody has to pay for it. All of us have to pay for it. I have said over and over with BEL from 2020 when we got into government, BEL has not asked for a raise in rates. COVID inflation, the heat waves that hit us in 2024 at one time Mexico was selling us a kilowatt of electricity at $1 US. And when they were cutting off this service to us, BEL had to talk to the big consumers, especially like in San Pedro, the tourist area, that who had their own generators, we asked them, BEL asked them cut off on the grid, and then you put on your generator and we will pay the difference because the price is way much higher than what BEL sells. Now, nobody wants to hear about the price going up, but when you look around, especially the Caribbean, we are way cheaper than them when it comes to electricity. But the time comes BEL has been selling its electricity cheaper than what it cost to buy. And I know, member from Mesopotamia, you are the only businessman across there…you will not sell your fried chicken for less than what you pay for the chicken, right? Because you have to make a profit. And that is exactly what is going on with BEL. We do not like the idea of raising the prices but if we do not then we the taxpayers will have to pay for that because then they come to us and say, well we need the money. And so where will it come from? It will come from the taxpayers. So as much as we don’t want to we have no other option. We held them down for five years. But now the time has come where unfortunately, we have to do this.”

Love News understands that to reduce the burden on those customers, the increase would be distributed in a way intended to minimize the effect on monthly electricity bills.  The full draft decision is available on the PUC’s website, www.puc.bz. The Commission is inviting written comments from BEL and the public by December 22, before making a final decision./