BEL proposes monthly electricity rate adjustment

BEL asks PUC to adjust bills monthly to reduce impact of cost of power recovery

BELIZE CITY, Tues. Apr. 7, 2026

   In a ten-page submission filed on April 1 for its 2025/2026 Annual Review Proceeding (ARP), Belize Electricity Limited (BEL) asked the Public Utilities Commission (PUC) to freeze the current mean electricity rate of $0.4428/kWh and the Reference Cost of Power (RCOP) of $0.3033/kWh. This means that consumers would see no increase in energy costs if the PUC approves the submission. However, BEL noted that its proposal is “subject to implementing an automatic Cost of Power (“COP”) adjustment mechanism to address ongoing cost of power volatility.”

   The utility provider is proposing a new mechanism that would allow the cost of power to be recovered monthly rather than through less frequent but larger rate changes. Under the proposal, monthly adjustments would be capped at plus or minus 5% of the RCOP, which is the fixed, approved value that determines how much BEL is allowed to recover for the cost of buying electricity within the base tariff.

   BEL argues that this approach would prevent “sudden and disruptive changes in tariffs,” and instead provide a more timely, predictable and transparent system. The monthly COP adjustment would appear as a separate line item on customers’ bills. Deferred balances would be tracked and recovered gradually. Each monthly adjustment would be based on the average actual COP over the previous six months. BEL also says it could make bi-annual submissions for the PUC to revise the RCOP as needed and approve any outstanding balance to be recovered or rebated.

   BEL explains that the cap on monthly adjustments will also ensure that customers benefit from any reduction in the cost of power.

   While the RCOP is currently set at $0.3033/kWh, BEL says the actual cost of power has ranged from 16 cents to 46 cents in extreme cases, and that it is not collecting sufficient revenue to cover those real costs.

   According to BEL, the cost of power for 2025/2026, was 9% higher than what the PUC approved, and its under-recovery is getting worse. For 2024-2025, BEL’s under-recovery is listed as $6.7 million, and that is forecast to rise to $22.8 million for 2025-2026. If tariffs remain frozen, BEL projects an under-recovery of $40.35 million for 2026-2027 and $25.78 million for 2027-2028. BEL warns that this trajectory could lead to cash-flow risks and unsustainable deferred balances.

   BEL cites several factors driving the widening under-recovery. It notes that a low-cost, renewable, in-country power generation supply is not set to come online until around 2028. In the meantime, it continues to face high purchase costs from Mexico’s CFE. With 2027 forecast to be a dry year due to El Niño, BEL anticipates reduced hydro output, further compounded by rising costs from emergency generation rentals in 2026/2027.

   The company also points to sales growth being 6% lower than projected due to the high cost of power, supply constraints and the impact of distributed generation.    With the proposed new recovery mechanism, BEL says the monthly recoveries, based on a forecast schedule, would average around $1.3 million to $1.6 million and the deferred balance would fall to manageable figures by the end of the Full Tariff Period, helping the company maintain financial stability. BEL contrasts this with “tens of millions of dollars in unrecovered balances, persisting until the next regulatory reset” under the current mechanism.