The Public Utilities Commission (PUC) of Belize issued an initial decision on December 12, partially approving a rate increase requested by Belize Electricity Limited (BEL). BEL asked for an increase of $0.0555 per kilowatt-hour in the Mean Electricity Rate. However, the PUC did not approve the full request and instead proposed an increase of $0.0337 per kilowatt-hour, resulting in a new Mean Electricity Rate of $0.4427 per kilowatt-hour.
According to the PUC, while consumers can expect to pay more for electricity in the first half of 2026, the Commission considered the impact on social and residential customers who currently fall below the General Sales Tax threshold. As a result, the PUC stated that adjustments to the Mean Electricity Rate will be distributed among customer categories to minimize the effect on household electricity bills. The adjustment is intended to assist BEL in recovering $87.5 million in energy supply costs incurred between July 2023 and October 2025, as well as to help cover projected costs for the first half of 2026.
During the Sitting of the House of Representatives on December 12, Prime Minister Honorable John Briceno expressed support for the increase. “Nobody wants to hear about the price going up, but when you look around, especially the Caribbean, we are way cheaper than them when it comes to electricity,” Briceno said. “But the times have come when BEL has been selling its electricity cheaper than what it costs to buy. So, as much as we do not want to, we have no other option.” The prime minister added that the increase is necessary due to expenses incurred by the national electricity company.
Some stakeholders in San Pedro, Ambergris Caye, have expressed hope that the increase will be distributed to minimize the impact on monthly electricity bills. Other island residents have urged the government to continue exploring alternative energy sources within Belize to reduce reliance on imported electricity from Mexico.
The government has previously discussed developing solar plants nationwide. A more concrete step toward energy independence was announced in October of this year, when the prime minister said his administration was pursuing the acquisition of three hydroelectric dams from Canadian company Fortis Inc. The hydro plants, located along the Macal River in the Cayo District, are known as Mollejon, Chalillo, and Vaca, and collectively provide approximately one-third of Belize’s electricity supply.
In the meantime, the PUC has invited BEL and other interested parties to submit written comments on the initial decision regarding the new Mean Electricity Rate by December 22, 2025. Following this consultation period, the Commission will issue its final decision. The whole initial decision document is available on the PUC’s official website: https://www.puc.bz/public-notice-puc-issues-amendments-to-the-bel-2025-annual-review-proceedings-arp-final-decision/.
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