BEL says it tried to shield customers from higher electricity rates during some of the toughest years for Belizean households. But now, the company says that decision has come at a heavy price. The utility reported a net loss of more than twenty-three million dollars in 2025, and Executive Chairman Lynn Young says much of that pressure came from rising fuel and power costs during and after the COVID-19 pandemic. Young says BEL held off on asking for rate increases while the economy recovered, but global disruptions and higher energy prices left the company with as much as sixty-five million dollars in unrecovered costs. Here’s more on that.
Lynn Young
Lynn Young, Executive Chairman, Belize Electricity Limited
“During and just after COVID, there was high inflationary pressures and the BEL’s cost was significantly higher than expected, and BEL wasn’t the only company. I think, you know, everybody was complaining about inflation caused by the war in Ukraine and other issues, right? But BEL at that time, in this position at that time, but BEL at that time discussed with the PUC and the government and decided not to apply for adjustment in rates. They decided to try to keep the rates consistent to, because the country was recovering from COVID and the expectation was that after things settled down, the cost, the oil prices would fall back and they would be able to recover. But as it turns out, other incidents happened. We had the Venezuela situation. We had the terrorist situation up north, and then we have the war in the Middle East. So by this time, the company had spent about sixty million dollars. I think the PUC in its initial decision says about sixty-five million dollars that the company spent that it hadn’t collected back in the rates because of the excess cost from fuel prices and tariffs and all the things that were happening internationally. So the company reached the point where it had to ask for rate adjustments and to try to see if it can start collecting back these monies that it had voluntarily agreed not to try just because it was trying not to have to increase the rates.”
Young says global shocks, rising fuel costs and problems with Mexico’s CFE continue to squeeze BEL’s finances.
Chebat Defends BEL Amid Losses and Severance Battle
BEL is under pressure, financially and legally. The company is dealing with millions of dollars in losses while also fighting severance claims brought by former employees. But Public Utilities Minister Michel Chebat says Belizeans should not count the utility out. Today, he defended BEL’s long-term future, stressing that the company remains critical to the country’s development and day-to-day life. Chebat says the severance matter must now play out in court.
Michel Chebat
Michel Chebat, Minister of Public Utilities, Logistics & Energy
“It is not a loss. It’s never a loss when you invest in BEL. Remember that BEL has to keep the lights on. And listen, I no know bout unu but when my light go off at my house, I get mad, right? I get mad. We need to keep the lights on. BEL is one of our fundamental institution that requires our support. And yes, they’re going through some challenges right now, but I have no doubt that in a few years the returns we have not got now we are gonna be getting down the road and perhaps double. So I have every faith in BEL”
Reporter
“What about the fact that as a utility they’re facing this, claim and demand from former employees that they should be paid severance, and that’s another pressure on their low income.”
Michel Chebat
“You know, it’s a good thing we have a high court in Belize to determine these issues, and whether, whether they, they are justifiable or not. That’s why the court is there, right? I don’t want to cast any judgment on it. I think the former workers have an interest and they, they have a claim. And so what needs to happen is that needs to be determined judicially.”
Chebat says he will follow up, but adds that if the court decides former BEL employees are owed anything, those rights must be respected.
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