Belizeans should see a small reduction in their light bill this month, if the Public Utilities Commission approves a submission from Belize Electricity Limited.
On Tuesday, April 2, BEL requested that the mean electricity rates should be reduced by one cent per kilowatt hour.
With rates currently at over 48 cents/ kwh, that cut won’t bring your light bill down to what it used to be when the residential rates were 41 cents/kwh, but it’s a small saving nonetheless.
BEL applied to the PUC for the rate reduction, under the annual review proceeding for the period June 1, 2013 to June 30, 2014. The adjust is to have rates more accurately reflect the actual cost of power since January, as compared to the cost BEL had projected when it submitted a cost-of-power estimate to the PUC last December.
BEL’s targeted Rate of Return is also being adjusted downwards from 10 percent to 9 percent, because the company’s financing costs have made it possible.
The challenges of BEL’s cost of power remain as the company reported in December, but the adjustment to the mean electricity rate in January allowed the company to meet its payments to suppliers.
This means BEL had to reduce its value added to delivery for the period from January to June 2013.
This reduced the high cost of power to customers and the company intends to gradually recover the shortfall in value added to delivery in future tariff review proceedings.
Under the new application for annual tariff review, the company will not be seeking to recover this shortfall, unless the cost of power continues to fall to previous levels.