7 News Belize

PUC at War with BEL over New Service Installations
posted (August 26, 2008)

The Public Utilities Commission and Belize Electricity Limited are at war again, but this time it’s not over rates, it’s about what are called new service installations. And as these elephants battle, the consumers are the one being trampled underfoot. First of all, you need to know what we mean by new service installations. The term is used to refer to power being connected to new buildings. BEL is also not performing line extensions or upgrades.

BEL’s position is that the PUC has set a limit of $25 million on its capital spending, and the power company has now exceeded that limit. And because installations fall within that capital spending, even if the consumers pay – as they must, BEL still classifies it as capital spending. And because the company is above the limit, it can’t spend anymore, which means that if you need power connected to your building, a line extension or a temporary connection, you’re out of luck because BEL won’t, or can’t do it.

The PUC’s position is that the explanation is bogus. The regulator maintains that the cap on spending does not affect new service installation, line extensions or temporary connections. Observers who are in the know tell us that the PUC feels BEL is purposefully lending an adverse interpretation to the cap on spending, and in so doing is leveraging angry consumers who just want their power connected, against the PUC. Again, we stress that is not an official position just what we’ve picked up from talking to a number of political sources.

But whatever the case, the battle continues, and it will be interesting to see if BEL capitulates tomorrow after the PUC issues a public position statement. If it does not, it is left to be seen what the PUC will do to compel BEL to honor the terms of its license.

Home | Archives | Downloads/Podcasts | Advertise | Contact Us

7 News Belize