Electricity Rates Rise, BEL Says Maintaining Service Will Be Challenging

Now in 2026, Belize Electricity Limited (BEL) began rolling out new electricity tariffs on January 1st, following approval from the Public Utilities Commission (PUC). The PUC approved a three-cent-per-kilowatt-hour increase over 30 months. BEL had requested an increase of nearly five cents over 24 months.
In its response to the PUC, the electricity company indicated that the approved increase is insufficient. It warned that BEL could face financial strain as it continues to provide this essential service nationwide.
Following consultations, the PUC issued its initial decision on BEL’s rate increase request on December 11th. BEL had sought an adjustment to the Mean Electricity Rate of $0.0549 per kWh, but the PUC approved an increase of only $0.0337 per kWh. With the requested increase, BEL projected $84.1 million in operating support; without it, the company reports a $18.8 million shortfall.
BEL issued a formal response on December 22nd, outlining millions owed to power producers. The response also highlighted more than $80 million invested in emergency gas turbines at the Westlake and San Pedro facilities to prevent prolonged power outages. According to BEL, without these investments, the country could have experienced daily outages lasting approximately two hours.
Additional financial pressures outlined in the letter include $52.5 million in arrears owed to Independent Power Producers as of November 30, 2025. Local debt obligations, excluding debentures, total approximately $92 million, while debt service commitments for 2026 to 2027 are estimated at $82 million.
BEL further noted that these pressures exist alongside continued volatility and structural gaps in the wholesale energy market, where supply constraints persist, and the rollout of lower-cost generation options remains delayed. Under these conditions, BEL stated it had no alternative but to incur unavoidable cost-of-power expenditures to ensure continuity of service to customers.
As such, BEL is requesting procedural guidance from the Commission on the appropriate regulatory mechanism to address unrecovered cost components. These may be considered through a future Annual Review Proceeding, a separate proceeding, or a consent-related recovery. The company noted that these costs include BEL-owned generation capacity charges, power-purchase-related professional and operational support expenses, and interest on late payments for power purchases.
According to the PUC, while consumer concerns have been raised—particularly in San Pedro—the Commission considered the impact on social and residential customers who fall below the General Sales Tax threshold. The PUC stated that adjustments to the Mean Electricity Rate will be distributed among customer categories to minimize the effect on household electricity bills.
In a press release dated December 30, 2025, BEL reaffirmed its commitment to delivering safe, reliable, and sustainable electricity services despite the shortfall. The company said it will continue maintaining service reliability while working with the PUC and the Government of Belize on long-term solutions, including cost-reflective tariffs, expansion of renewable energy and battery storage, grid modernization, and improvements to system resilience.