When the cost of producing electricity rises, who should pick up the difference, BEL or its customers? Belize Electricity Limited says the answer is consumers, and it is asking the Public Utilities Commission for greater flexibility to recover those expenses through electricity bills. BEL wants to increase the maximum Cost of Power Adjustment from five to ten percent as imported energy prices climb and the company uses more costly diesel generation to keep up with local demand. The utility maintains that COPA simply passes along the actual cost of purchasing power. But doubling the cap could also mean steeper adjustments for households and businesses. Doctor Leroy Almendarez, CEO in the Ministry of Public Utilities, spoke today about BEL’s request and the possible impact on consumers.
Leroy Almendarez
Dr. Leroy Almendarez, CEO, Ministry of Public Utilities
“They made a previous application as we know, and that application says it will be capped at five percent of the reference cost of power, which was set at thirty point zero six cents I believe. That is one point five cents per kilowatt hour added to your bill on a monthly basis, if it increases. But it could also decrease, so you take away the one point five from the thirty. Now the cost of power just continued to increase. As a matter of fact, at this point in time, we don’t have any load shedding, but what are we using, what is it being generated from, the source. It is diesel and that is about eighty cents per kilowatt hour. And if you average those with the others you will see it has increased. So now they have made that application and you asked me to explain it. It is in PUC hands. That application was made to PUC and if PUC approves it, it will be one point five times two. It would go from five percent to ten percent as a cap, which will be three cents per kilowatt hour. PUC as I have noticed has done the right thing. They have put it out in the public and said, listen BEL has made this request. You have an opportunity to say why or why not, but of course you cant say yes or no, you have to have a reason why you believe this should not be taken into consideration.”
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