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Nov 4, 2009

Mexican power supplier to pull plug on B.E.L.

Comision Federal de Electridad is pulling the plug on B.E.L. The supplier informed today that it intends to cancel its guaranteed power supply control contract with B.E.L. because its (quote) generation capacity has been significantly limited, (unquote). CFE first signaled that it was revisiting the agreement in April when it indicated it would not continue to supply power in line with the contract. According to B.E.L., the contract with the Mexican supplier would have expired in December 2010. A few weeks ago, C.F.E. picked up the slack for power in Mexico City created by the closure of Luz y Fuerza, the state owned company, which was running billion dollar losses. According to B.E.L., however, CFE is proposing a new contract to provide up to fifty Megawatts of economic emergency energy to Belize which, the company warns, will be higher than the current rates. And if you wondering if this will compound the situation with outages, B.E.L. says there is sufficient generation to meet the local demand through arrangements with Belize Electric Company, Hydro Maya Limited, Belize Aquaculture and its own turbine. The entire country needs seventy-four megawatts of electricity at peak time. Interestingly, BEL makes no mention of purchasing power from BELCOGEN which is to come on line shortly.


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