In a few months, the electricity rates you're currently paying will increase by one or 2 cents per kilowatt hour. That's because the Public Utilities
Commission has approved a rate increase in their Full Tariff Review Proceeding.
The last Mean Electricity Rate that the PUC approved was 35 cents per kilowatt hour. This time around it has approved a mean rate of 36.43 cents per
kilowatt hour. That's a 4.08% increase.
Today, the Chairman of the PUC held a press conference to speak in detail about the justifications for the rate increase. It's a bit technical, but
here's John Avery simplifying it so that you can understand that BEL must be allowed to continue making a reasonable profit:
John Avery - Chairman, PUC
"They recommended a rate of 39.04 cents. The PUC approved a rate of 36.43 cents that is the mean electricity rate. As you will see from that, everyone
doesn't pay the same rate. So based on that mean electricity rate the current rates they you're paying, the mean electricity rate is at 35 cents. So
the 36.43 is a 4.08% increase on that; that is the situation. You will understand that 35 cents, the real reason for that 35 cents rate, a lot of that
had to do with the fact that in previous years, we had overestimated the cost of power. In 2012 for example, he had some serious droughts and we had
minimum production from BECOL. When BECOL produces less power, we lose our purchasing less power at their lowest rates. So when we have to purchase
less from them, we pay effectively a higher rate. At that same year June the drought that was affecting Belize, affected Mexico so we had a higher rate
for them also. That year we had to increase rates to 48.86 cents so that BEL could pay its bills. So based on what happened that year, we were kind of
conservative in the estimates from the next couple years and so what happened is that last year, we realised that in the previous two years BEL
received a lot more for the cost of power than what was actually spent."
"You'll find that mostly the rates were increased by one or two cents based on the rounding up or down. For example last year for the social rate, this
currently, the minimum charge is 350 but the per unit rate is 20 cents. So basically that was increased to 21 cents."
BEL says it is reviewing the PUC Decision. That's because the power company was asking for an average Mean Electricity Rate 39 cents per kilowatt
hour. They say that will allow them to improve service reliability and expand to over 200 communities.
BEL will formally respond to the PUC by March 22
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