Lower electricity rates proposed

Water rates are currently undergoing an annual review, and Baker, Tilly and Hulse, the local accountancy firm of Mark C. Hulse, chartered accountant, submitted its report on Friday, April 4, with the Public Utilities Commission (PUC), outlining recommendations which the PUC said it plans to incorporate before issuing a final decision on a potential rate increase on or before Tuesday, April 15.

Armed now with the Baker Tilly and Hulse report, the PUC is tasked to decide exactly how much of a rate increase it will approve. Any increase in water rates should take effect this month, April.

As we had reported in January, the Belize Water Services (BWS) had asked the PUC to grant a “16.25% increase in tariffs, fees and other charges, in order to provide the increase in revenues required to finance the vitally necessary capital investments;” however, the PUC approved a rate of 6.4%, following its assessment of BWS’s submission.

The BWS objected to the PUC’s decision in assessing the company’s contributing capital, and as is required by law, where the parties disagree, an independent expert is required to review the PUC’s initial decision and the company’s rate review proposal, before making his or her recommendations.

Meanwhile, the Belize Electricity Limited (BEL) last week submitted an application, as part of its annual review proceedings, for a 3.7% reduction in tariffs, down from an average of 44.65 cents to 43 cents per kilowatt hour (kWh).

“BEL’s proposed reduction takes into consideration the most recent forecast of cost of power and the opportunity to pass on savings to customers, by continuously seeking ways to lower the cost of electricity in Belize in the short term and long term,” the company said.