PUC says BEL can’t get temporary increase
On Thursday BEL announced it was requesting a short term rate hike to offset the rising cost of fuel and its effect on their operations. They said it was a “last resort” after eighteen months of attempts to improve their liquidity position, taking measures which included early retirement incentives for thirty percent of their staff and the decision by their largest shareholder, Fortis Inc. to re-invest its dividends. However, the Public Utilities Commission lost no time in responding to the BEL request, and called a press conference this afternoon to announce that unfortunately for BEL, but fortunately for the rest of us, the PUC Act does not allow them to entertain a tariff adjustment at this time, even a temporary one.
Dr. Gilbert Canton, Chairman, PUC
?At this point basically, we cannot consider the application in a formal sense, that BEL has made to us. The reason being that tariffs are set according to regulations. What the regulations provide for is an annual review proceeding, and a full tariff review proceeding. We have just completed an annual review proceeding for this year in June. And that set the tariffs from July first, until June thirtieth of next year. We are preparing right now for a full tariff review which sets the structure going forward for four years. That piece of legislation really guides, the only way we can look at tariffs for any adjustment. It provides for an objective, transparent, public involvement proceeding, like what we did on the water, that kind of proceeding to get people interactive and get people involved in the final decision under the PUC. Other than that, we can address it under the complaint process under the Public Utilities Commission Act, but even that has some restrictions to it. So basically and under the legal legislative environment that we operate under, we cannot really consider BEL?s request as they have put it to us at this point in time.?
However, Dr. Canton says the PUC is not insensitive to the situation BEL finds itself in and has communicated to BEL CEO Lynn Young that the Commission is prepared to look at other measures that might be taken to help them through this crisis. Canton says the PUC does not believe it is a question of long term viability for the company, since BEL is turning a profit, but a short term liquidity crunch due to rising fuel costs. But BEL can request a full tariff review in sixth months, so Belizean consumers may be getting a break right now, but it?s no guarantee rates will not go up in the future.
