On June 12th, the Public Utilities Commission (PUC) of Belize issued its final decision rejecting Belize Electricity Limited’s (BEL) proposal for an electricity rate increase for the period from July 1, 2025, to June 30, 2026. The PUC confirmed that there will be no changes to electricity rates during this timeframe, effectively maintaining the current rates for Belizean consumers.
BEL submitted its request in April 2025, seeking an average increase of three cents per kilowatt-hour, which would have raised the average rate from 40 to 43 cents per kWh starting January 1, 2026, and continuing through June 30, 2028. The company justified the hike as necessary to offset rising operational expenses, including a nearly 5% annual cost increase and a significant portion of its budget dedicated to payroll. BEL also cited escalating energy generation expenses, projecting power costs to exceed $222 million in 2025 and continue to rise by 2029. The company emphasized the need to recover past energy supply costs that exceeded revenues and to continue investing in infrastructure and system reliability, noting a projected 50% increase in fixed assets by 2028.
Despite BEL’s detailed submission, the PUC conducted a thorough review, which included a 30-day evaluation period followed by a public feedback window. After careful consideration, the commission rejected the proposed rate increase.
In an interview with the media on June 13th, PUC Communications Manager Sheena Garnett provided insight into the commission’s decision to reject BEL’s proposed rate increase. She explained that under Belize’s Electricity Act and associated bylaws, any approved rate adjustment must occur at the start of the Annual Tariff Period (ATP), which runs from July 1, 2025, to June 30, 2026.
Garnett stated that BEL’s request to delay the implementation of the increase until January 1, 2026, did not align with the legal requirements. “The bylaw, Section 34, Clauses Two and Three, and its complementary Part Three state that if there is a rate increase, it should occur on the first of that ATP period, which would have been July 1, 2025,” she said. “So, if we’re guided by the law, then we cannot proceed with examining something that they’re requesting that falls outside the parameters of the bylaws.”
She emphasized that deviating from this structure could set a problematic precedent and lead to confusion. “The principles of rate setting are to create consistency,” Garnett noted. “If we go outside of the parameters of the bylaws and approve something like this, then it will cause confusion for consumers.”
Addressing BEL’s justification for the proposed increase, Garnett acknowledged that the company faces real financial pressures. “Every day BEL operates, they make financial commitments,” she said. These include purchasing power from suppliers, distributing energy across the country, and maintaining the national grid. According to Garnett, these expenses are directly reflected in electricity rates.
However, she pointed out that for the PUC to fairly evaluate such requests, the timing must align with the established regulatory framework. “The closer the rate or their requests reflect their financial costs, the more stable it would be when they’re making the request,” she explained. Asking to defer the increase while citing urgent cost recovery needs “makes it harder for us to make a comprehensive decision,” she added.
Garnett concluded by reaffirming that the regulatory process is laid out and must be followed. “It’s not for us to instruct BEL on how they are supposed to make their submissions to us. All of these things are outlined in this regulatory process,” she said.
Previous attempts by BEL to increase rates have met resistance from both the government and the public, reflecting the sensitivity surrounding electricity costs in Belize. As the largest electricity consumer, the government has historically objected to rate hikes, emphasizing the need to protect consumers from rising living expenses.
While BEL continues to face growing costs and infrastructure demands, the PUC’s decision signals a commitment to maintaining stable electricity prices in the immediate future. Additionally, the PUC has assigned BEL two important responsibilities. First, by June 30th of this year, BEL must submit a detailed plan for a new power generation company, Synergy Power Belize Limited, including proposed electricity rates. Second, BEL must submit a comprehensive proposal for a new electricity billing system that accurately reflects the cost of delivering power.
