By Benjamin Flowers
Belizean consumers will begin the new year enjoying a five percent drop in the cost of electricity, the Public Utilities Commission announced this week.
After reviewing initial proposals by the Belize Electricity Limited, the PUC decided that the rate could be reduced even further than the 3.4 percent proposed.
“While the initial proposal called for a 3.4 percent reduction, the PUC found when we looked at the formula, that it could be reduced by five percent,” PUC Director Derek Davis said. “Customers will begin enjoying the new rates effective January 1 and these will run until June, 2015.”
Davis explained that according to the formula for adjusting electricity rates, the PUC had 15 days as of December 8 to respond.
It responded by proposing a five percent reduction – 1.6 percent more than BEL had originally proposed.
BEL on Monday, signalled that it was ready to accept the PUC’s point of view. The proposed reduction (5 %) is the result of savings the company has realized in the cost of power acquisition. Now BEL wants to pass on those savings to consumers.
The savings were realized mostly from lower than expected cost of power purchased from Mexico’s Comisíon Federal de Electricidad (CFE) during the current tariff period.