By Zoila Palma: Belize Electricity Limited (BEL) is seeking approval from the Public Utilities Commission (PUC) to increase the Cost of Power Adjustment (COPA) cap from 5% to 10%, which would raise the surcharge on electricity bills from 1.51 cents to 3.01 cents per kilowatt-hour.
BEL says the request is driven by rising fuel costs and lower-than-expected hydroelectric generation.
BEL Executive Chairman Lynn Young explained the financial pressures affecting the company and the reasons it is seeking the adjustment.
Young said BEL’s diesel costs have risen sharply, adding, “At the start of the year, diesel price for us, for BEL, was $6 a gallon—and that’s diesel-free—and now it’s close to $12 a gallon.”
He also pointed to rising electricity costs from Mexico’s Comisión Federal de Electricidad (CFE), which has faced its own generation challenges. Young explained, “And then the second thing that happened is that CFE, their price… while they’re experiencing similar challenges, they generate a lot with natural gas, and natural gas prices have been climbing.”
In addition, Young explained that CFE’s supply curtailments forced BEL to rely more heavily on its own diesel generators, while delays in the arrival of temporary generation equipment worsened the situation. He said, “This was…we got quite a lot of curtailment. In fact, I think it’s 100-something hours in September alone that we got curtailed.”
The reduced supply from Mexico contributed to load-shedding events as BEL struggled to meet electricity demand.
Young said BEL had originally expected diesel generation to account for only a small portion of the country’s electricity supply this year, but that figure has increased significantly.
“So, our plan was normally we’d run maybe 2 to 4% of the supply would be with diesels. This year it has been like 18%,” he explained.
He added that using diesel generators at nearly double the usual fuel price has substantially increased the cost of power. The proposed COPA adjustment remains subject to the PUC’s approval.
The post BEL says higher electricity rates necessary due to rising fuel costs appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Zoila Palma: Belize Electricity Limited (BEL) is seeking approval from the Public Utilities Commission (PUC) to increase the Cost of Power Adjustment (COPA) cap from 5% to 10%, which would raise the surcharge on electricity bills from 1.51 cents to 3.01 cents per kilowatt-hour. BEL says the request is driven by rising fuel costs
The post BEL says higher electricity rates necessary due to rising fuel costs appeared first on Belize News and Opinion on www.breakingbelizenews.com.
