P.U.C. Discusses B.E.L.’s Latest FTRP Application
John Avery
The Public Utilities Commission held a press conference today, following the submission of an application by Belize Electricity Limited for a Full Tariff Review Proceeding for 2020 to 2024. The F.T.R.P., as it is known, is a review and subsequent determination by the P.U.C. of the regulated values, mean electricity rate, as well as tariffs, rates, charges and fees that are applicable for the period in question. While the existing forecast envisages an increase in costs and Mean Electricity Rate of forty-five cents during 2020 and 2024, B.E.L. intends to maintain its current rates to customers up to December thirty-first, 2020.
John Avery, Chairman, Public Utilities Commission
“When we set rates we are setting rates for a future period and things change during that future period and so, in some instances it might be hurtful to B.E.L. and in some instances it might be beneficial to B.E.L. and hurtful to customers. Based on the rate setting methodology, we believe it’s only fair to do reconciliations. The cost of power is one that definitely forces us to do that because B.E.L. is not allowed to suffer a loss or to incur any profits on the cost of power itself, any markup. So when we include a certain cost of power in the rates, if that isn’t achieved then based on the law, we believe we need to do some corrections to fix that situation. Now during the period in question, most of the corrections we did are related to cost of power. We’re all aware by now that since July 1st, 2018 to June 30th, 2019, B.E.L. had incurred significant more expenses for power that were approved in the rates and over the last two opportunities, B.E.L. has asked the P.U.C. to defer any rate changes and so that amount basically grew and when we did our corrections for 2018-2019, we recalculated everything based on the investment, etc… based on the cost of power and we approved a total of two hundred and sixty-five million, thirty-nine thousand, a hundred and ninety-six dollars. During that same period, B.E.L. realized a tariff basket revenue of two hundred and thirty-three million, one hundred and fifty-six thousand and sixteen dollars. So that produced a difference of thirty-one million in favour of B.E.L.”
