B.E.L. Seeks Rate Increase; PUC Reviewing Application

Your electricity bill might go up as early as July if the Public Utilities Commission approves Belize Electricity Limited‘s request for a rate hike. B.E.L. submitted their proposal on April fourth, covering the period from January 1st, 2026, to June 30th, 2028. The P.U.C. will spend thirty days reviewing the ninety-one-page document before announcing their initial decision. After that, B.E.L. customers will have ten days to share their opinions. News Five’s Marion Ali has the scoop on what B.E.L. is asking for.

 

Marion Ali, Reporting

Belize Electricity Limited is asking for a rate increase from forty cents to at least forty-three cents per kilowatt-hour. This three-cent hike would start on January first, 2026, and last until June thirtieth, 2028, when the next tariff review is due. B.E.L. argues that the proposed rate hike is essential to offset the rising costs of energy imports and the inflationary pressures on their operating and maintenance expenses. Additionally, the utility company highlights the need for investments to upgrade and modernize the grid, connect new renewable energy sources, and install other supportive equipment. B.E.L. believes that this increase will provide stability over the requested period.

 

B.E.L. is aiming for a revenue requirement of three hundred million dollars for 2024-2025, which is actually forty-three million less than the previous period. They predict that the cost of power will go up by an average of three-point-three-five percent each year due to increasing generation needs, which are expected to rise by over five percent annually. As a result, the cost of power is projected to exceed two hundred and twenty-two million dollars this year and climb to over two hundred and fifty-one million by 2029.

 

In its submission, B.E.L. mentioned that from 2020 to 2024, it invested an average of thirty-three million dollars each year to expand its distribution system. This allowed them to connect two thousand new customers annually and improve grid accessibility across the country. By 2024, B.E.L. had over one hundred and thirteen thousand customers, marking a twenty-five percent increase since 2016. Consequently, electricity sales surged by thirty-point-four percent during that period.

 

On top of these increases, B.E.L.’s operational expenses are expected to rise by nearly five percent each year over the planned period. They report that forty-six percent of this year’s budget is dedicated to payroll alone. Their operating costs have consistently exceeded regulatory limits over the past period, reflecting the growing financial demands of maintaining a modern grid. From 2020 to 2024, B.E.L.’s actual operational expenses surpassed the P.U.C.-approved thresholds by two to four million dollars annually.

 

B.E.L. reports that since 2020, its net fixed assets have grown by twenty-eight percent, thanks to ongoing investments in infrastructure, system upgrades, and service improvements. Looking ahead, the company expects this figure to jump by another fifty percent by the end of 2028. This snapshot is just a glimpse of what the P.U.C. will be reviewing in the coming weeks before making its initial decision on B.E.L.’s application. After that, B.E.L. customers will have ten days to share their opinions. News Five will keep you updated when the decision is made. Marion Ali for News Five.