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BEL proposes to maintain mean electricity rate Print E-mail
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Friday, 12 April 2019 00:00

While it was expected that the mean electricity rate (MER) of $0.41 per kWh would see an increase from July 2019 through to June 2020, the Belize Electricity Limited (BEL) submitted a proposal to the Public Utilities Commission (PUC) to maintain the current rate. That expected rise in the rate would have been due an increase in January but BEL has said that the current rates will remain. The company says that they experienced a fall in their required revenue of $18.5 million. This is because sales projected for the July 2017 to June 2018 period were not realized and the cost of power from suppliers was higher than expected. In an effort to lessen the impact on consumers, the company is proposing to recover this shortfall over the next three annual tariff periods instead of over a short period of time.

Their release says that preliminary estimates are that the cost of power for the current Annual Tariff Period (ATP) will be $22 million higher than had been previously projected. This is because of expected low production from local hydro plants which resulted from drought, as well as unstable rates from Mexico’s Federal Electricity Commission. This will, unfortunately, result in additional shortfalls of revenue that BEL will have to recover in future tariff periods.

“BEL continues to explore ways to mitigate impacts of increases in the cost of power on electricity rates while remaining committed to its mission of providing safe, reliable, and affordable energy services.”