PUC Maintains BEL Electricity Rates, Rejects Automatic Monthly Tariff Adjustments

The Public Utilities Commission (PUC) has maintained Belize Electricity Limited’s (BEL) current base electricity rates for the 2026-2027 tariff period while declining the utility’s request to introduce automatic monthly rate adjustments. Instead, the Commission will evaluate the proposal through a closely monitored Regulatory Sandbox before considering its wider implementation.
The decision was outlined in the PUC’s Initial Decision on BEL’s Annual Review Proceeding (ARP), issued on July 1, 2026. The ruling covers the regulatory period from July 1, 2026, to June 30, 2027, and confirms that base electricity tariffs will remain unchanged for customers during that time.
BEL submitted its rate application to the PUC on April 2nd, requesting that existing tariffs remain in place while also seeking approval for a Cost of Power Adjustment (COPA) Tariff. The proposed mechanism would allow monthly adjustments to electricity bills based on the difference between the PUC-approved Reference Cost of Power (RCOP) and BEL’s actual cost of purchasing electricity from local and regional suppliers.
While the Commission agreed to maintain the current base tariffs, it rejected the request for automatic monthly adjustments. The PUC stated that Belize’s regulatory framework requires all rate changes to receive prior approval before taking effect. Instead, the Commission will establish a Regulatory Sandbox to test the COPA mechanism under strict regulatory oversight, transparency requirements, and consumer protection measures.
The decision comes as BEL continues to face financial pressures. In 2025, the utility reported a net loss of more than $23 million, with purchased power accounting for approximately 76% of its operating revenue. BEL has previously indicated that rising energy costs have affected its ability to meet payment obligations to the Comisión Federal de Electricidad (CFE) in Mexico, warning that delayed payments could potentially affect the country’s electricity supply.
BEL maintains that a monthly adjustment mechanism would allow electricity costs to be recovered more gradually, reducing the need for larger rate increases in future annual reviews. “The suggestion was to smooth out the effect on customers rather than wait a year or two when you’re having to adjust the rates by five or six cents,” said BEL Executive Chairman Lynn Young during a media interview. “It would be on a monthly basis, using a six-month average of the cost of power compared to what is already reflected in the rates. The mechanism would also cap any adjustment, either up or down, at one and a half cents.”
BEL General Manager Dawn Sampson-Nuñez said the proposed system would also benefit consumers when electricity purchase costs decline. “Where there is a decrease in the cost of power, meaning that we pay our power suppliers less than what the PUC approves for the cost of power, those savings would also be passed on to our customers,” she said. “The key is making sure any increase or decrease is passed on in a way that customers can manage, without sharp fluctuations.”
According to the PUC, the Regulatory Sandbox will assess whether monthly, PUC-approved adjustments can reduce large cost recovery balances while ensuring BEL provides timely, accurate, and verifiable operational and financial data to support each request.
The sandbox process will begin after the Commission issues its Final Decision. During the trial period, BEL will be required to submit monthly applications supported by detailed financial and operational information. Any adjustment approved by the PUC would appear as a separate line item on customer electricity bills and apply across all customer classes.
The PUC is accepting written comments on its Initial Decision until July 13, 2026, via info@puc.bz, with the subject line “Comments – Initial Decision on BEL’s 2026-2027 Annual Review Proceeding.” Following the consultation period, the Commission will determine whether the COPA Tariff should be adopted, modified, continued, or discontinued based on the results of the Regulatory Sandbox.