By Breaking Belize News Staff: Prime Minister John Briceño says his government intends to discourage Belize Electricity Limited (BEL) from increasing electricity rates, despite acknowledging the growing financial pressures that have prompted the utility to seek approval for higher charges.
Speaking to reporters on Thursday, Briceño addressed BEL’s application to the Public Utilities Commission (PUC) to increase the maximum monthly Cost of Power Adjustment (COPA) from 5% to 10%.
The proposed adjustment could result in some consumers paying approximately 6% to 7% more on their monthly electricity bills.
Briceño said he understood the rationale behind BEL’s application, explaining that the COPA mechanism was introduced to allow electricity prices to respond more quickly to changes in generation costs.
He noted that the traditional regulatory process for adjusting electricity rates could take six months or even a year, leaving the utility exposed to significant financial losses whenever electricity-generation costs rise.
The expectation, he explained, was that adjustments could also work in consumers’ favour when generation costs declined.
However, he acknowledged that anticipated reductions in fuel prices have not materialized.
Despite those challenges, Briceño said his government would discourage further increases in electricity rates while it explores alternative means of assisting BEL.
The Prime Minister said the administration is attempting to secure the financing necessary to keep the electricity company operating without transferring additional costs to consumers already struggling with the rising cost of living.
BEL Executive Chairman Lynn Young has warned that the company faces nearly $30 million in unrecovered power costs, placing considerable pressure on its finances.
The PUC has not yet approved BEL’s request to increase the monthly adjustment ceiling.
The post PM Briceño says government will discourage BEL’s proposed electricity rate increase as Belizeans struggle with rising bills appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Breaking Belize News Staff: Prime Minister John Briceño says his government intends to discourage Belize Electricity Limited (BEL) from increasing electricity rates, despite acknowledging the growing financial pressures that have prompted the utility to seek approval for higher charges. Speaking to reporters on Thursday, Briceño addressed BEL’s application to the Public Utilities Commission (PUC)
The post PM Briceño says government will discourage BEL’s proposed electricity rate increase as Belizeans struggle with rising bills appeared first on Belize News and Opinion on www.breakingbelizenews.com.
