BEL Requests Increase in COPA Cap from 5% to 10%

On Wednesday, October 28, Belize Electricity Limited (BEL) confirmed it submitted a request to the Public Utilities Commission (PUC) to raise the monthly limit under the Cost of Power Adjustment (COPA) mechanism from 5% to 10% of the approved Reference Cost of Power. While the adjustment could raise electricity bills, BEL explained that the proposal does not mean customers’ bills would increase by 10%. The company said the request is necessary because its power purchase expenses continue to exceed the existing 5% cap.
COPA is a regulatory mechanism that allows utilities to recover changes in electricity import and generation costs. In July, the PUC approved a 5% cap, equivalent to approximately 1.5 cents per kilowatt-hour. If the PUC approves the latest request, the expanded 10% cap could allow the Mean Electricity Rate to adjust by up to 3.01 cents per kilowatt-hour. BEL attributed the request to persistently high prices for electricity imported from Mexico and lower-than-expected domestic hydroelectric generation.
During a virtual press conference on Wednesday, October 28th, BEL’s Executive Chairman, Ambassador Lynn Young, said the proposed COPA adjustment would have a minimal impact on residential customers with monthly electricity bills of $200 or less. These customers are also exempt from the standard 12.5% General Sales Tax. Commercial customers and those with higher electricity consumption, however, could see their bills rise by 5% to 7% if the PUC approves the request.
BEL purchases a significant portion of its electricity from Mexico’s Comisión Federal de Electricidad (CFE). According to reports, BEL is facing financial difficulties, and CFE could temporarily discontinue its supply if BEL fails to meet its debt obligations to the Mexican supplier.
“In recent months, electricity purchasing costs have remained higher than anticipated due to increased energy prices in Mexico, lower-than-expected hydroelectric generation, and the continued need for temporary generation to support the reliability of the national grid,” BEL said in a release. The company added that the current COPA limit allows it to recover only a portion of these additional costs each month.
Dr. Leroy Almendarez, Chief Executive Officer in the Ministry of Public Utilities, told the media that BEL considered several options to address its financial challenges, including raising electricity tariffs, borrowing from commercial banks, and seeking funds from shareholders. The company pursued the shareholder funding option, issuing 8,138,020 preference shares to the Government of Belize (GOB) at $9 per share. Through the purchase, GOB will invest approximately $73 million in BEL. Almendarez added that no load shedding is currently expected, as BEL is relying on diesel generation, which has increased electricity supply costs.
In San Pedro, Ambergris Caye, residents expressed concern about another potential increase in electricity bills. One entrepreneur said his bill had doubled despite his being away from his apartment for much of the billing period. “My bills went from $400 to over $800, and for that particular month, I was not even home. Imagine now with this new increase being requested, my electricity bill will be higher,” the concerned islander said.
Other residents, who asked to remain anonymous, said they were concerned that prices for goods and services would also rise if the requested adjustment is approved.
BEL’s request remains subject to PUC approval. Before deciding, the commission is inviting written comments from the public. Comments may be emailed to info@puc.bz by 4 p.m. on November 17, 2026.