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PUC orders BEL to sign power purchase agreement with Santander

HeadlinePUC orders BEL to sign power purchase agreement with Santander

BELIZE CITY, Mon. July 20, 2020– The Public Utilities Commission (PUC) and Belize Electricity Limited (BEL) seem to be at odds. The electricity company and the PUC have been in negotiation with Santander Sugar Industry to finalize a Power Purchase Agreement (PPA).

BEL asserted that the PUC has sidelined them in the negotiations and is trying to push through an agreement that does not ensure the best interests of their stakeholders, which is a key objective of theirs.

At a press conference held on July 15, the PUC announced that it would make an order under Section 23 of the Electricity Act to oblige BEL to comply with condition 17 of its license.

Ambrose Tillett, Director of Electricity at the PUC, said that they believe that BEL refused to accept the agreement negotiated by the PUC because the company does not want to operate in a restrictive environment.

The PUC said that Santander has already agreed to the drafted PPA, but BEL has still refused to come to the table.

The executive staff at BEL said that there are many gaps in the agreement, and they have started the process of reviewing their options and remedies as it relates to the order laid down by the PUC.

Leon Westby, Senior Business Analyst at BEL, said that the company has not been opposed to the PUC. “We have been engaging, but we haven’t been engaging, you would say, the way the PUC wants, which is simply to accept their proposal,” he said.

The chairman of the PUC said that the agreement would represent the second-lowest cost of electricity procured by BEL, and would also provide economic relief by way of employment in the country.

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