The Public Utilities Commission (PUC) last week issued television and print advertisements calling public attention to the Belize Electricity Limited (BEL)’s alleged “protest actions” started after the June 26 final decision in the Annual Review Proceeding (ARP), in which the energy company was denied a hefty rate increase.
According to the PUC, BEL is expected to charge customers a standard fee for installation of services, including lampposts in areas previously not covered by the company. The PUC is alleging that customers have complained to them that BEL is charging excessively and not complying with the conditions of its license, particularly its “obligation to satisfy all reasonable requests for electricity services.”
The PUC further charges that BEL “has been denying and/or frustrating reasonable requests for the provision of electricity services, and has sought to enforce new service installation codes of practice that have not been approved by the Commission.”
BEL’s actions have forced the PUC to issue notice of an Order to the company under Sections 13 and 23 of the Electricity Act (Cap. 221 of the Laws of Belize) and Section 22 of the Public Utilities Commission Act (Cap. 223). The PUC is inviting public comment by email or in writing to its offices at Gabourel Lane no later than October 31, 2008.
The PUC has indicated that it is willing to hold a public meeting on the issue, if necessary, on November 4, but will issue the Order, no matter what, on November 7.
But not if BEL has its way. In a press release issued this evening BEL stated it was “disappointed” with the PUC’s “rash actions”, rejected the PUC’s allegations and, near the end of the release, said it was seeking to have the current matter reviewed in the courts.
From BEL’s point of view, the PUC ignored a 2005 proposal by the company to discontinue charging prospective customers for one-and two-pole line connections in exchange for a promise of recouping its costs in the tariff at a rate of 12%.
BEL now says its ongoing cash crunch has forced customers to pay for everything up-front, with the promise of refunds after later connections are made. BEL claims its average cost per year for installing multiple pole connections for residential customers is $1.4 million, gargantuan compared to the returns from actual electricity bills, which average $100 per month for 7,000 residential customers and $20 for those on the social rate.
BEL charges that instead of “balancing” its decisions and working with BEL to resolve the matter, the PUC has adopted a “confrontational” approach, which BEL says will not benefit anyone.
If BEL contravenes the PUC order whenever it goes into place, it faces a fine of $10,000 in the first instance, and a further fine of $1,000 for each day it remains in contravention. Persons of authority at BEL could face $500 fines if they are unable to explain why they did not follow the order, and most significantly, BEL could see its license revoked.
PUC Chairman John Avery responded to our comments just before press time tonight. He refuted BEL’s accusation that the PUC ignored their 2005 proposal, stating that the codes in question had been in place since 2003.
Avery described BEL’s policy to us as follows: the installation of electricity to a consumer that requires one or two poles only costs $200, while the cost of anything else is shared between the consumer and BEL.