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The Public Utilities Commission (PUC) twice denied Belize Electricity Limited (BEL) rate hikes this year. BEL has insisted that without the increase the company will find itself in a financial crisis and will be unable to adequately service consumers. (File photo) | |
BELMOPAN, Belize, May 23, 2008 - The electricity company in Belize has warned that it will be forced into rotating blackouts across the country within weeks if it is not granted the 25 per cent rate increase it has asked for.
The Public Utilities Commission (PUC) twice denied Belize Electricity Limited (BEL) rate hikes this year. BEL has insisted that without the increase the company will find itself in a financial crisis and will be unable to adequately service consumers. The PUC has turned to an expert consultant to evaluate the company's application and will make its final decision after considering the expert's report which is due by June 11.
But H. Stanley Marshall, Chief Executive Officer (CEO) of BEL's majority owner, Canadian power company Fortis, has suggested that the country's regulatory system has failed and a decision not to grant the rate increase would affect Belizean consumers.
He insisted that if BEL is to continue to meet its obligations to serve its customers, the PUC "must flow through the full cost of power to our customers and enable BEL to earn a reasonable rate".
"Regulatory issues must now be resolved and electricity prices must be increased to reflect the true cost of power before Fortis will make any additional investment in BEL...if this is not done, BEL will not have the cash to purchase power from Mexico in the coming months. Without power from Mexico, BEL will be forced into rotating blackouts. Immediate action is required," Mr Marshall warned.
"I cannot understate the seriousness of the situation. If you look at the magnitude of the numbers involved there, in my mind, is simply no alternative. The situation has been aggravated considerably by the refusal of the Public Utilities Board to recognise the reality...with oil prices based upon US$129 a barrel, the ordered magnitude of increase required is approximately 25 per cent."
He added that, on a personal basis, Belize has been "the most rewarding jurisdictions of any place that Fortis serves", noting that through that company's investment, BEL "has become a leading company in this country and has made significant progress towards becoming the best utility in the whole region".
However, Mr Marshall contended that "on a corporate level, Belize has been the most frustrating jurisdiction I've ever experienced in my almost 30 years in the business", charging that there have been repeated failures to deliver on what has been committed to the company as a strategic investor in the country.
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