“B.E.L. is not mollycoddled at all” – John Mencias
During this morning’s stakeholders’ forum, P.U.C. Chairman John Avery commented on the inconsequential effect of imposing a fine on either of the two utility companies. Given the fact that government is the majority shareholder in both B.W.S. and B.E.L., would a financial penalty for dropping the ball really affect their bottom line? According to Avery, it would be no more than a slap on the wrist, despite the scale of losses for investors on the island. While that may be so, C.E.O. John Mencias says that B.E.L. is not being pampered and spoiled by government. Here’s how that brief exchange went.
John Mencias
John Mencias, C.E.O., Belize Electricity Ltd.
“I had meant to address this matter that was brought up by the P.U.C. Chairman. It is not true that B.E.L. is protected by the government in any way, shape or form from penalties. B.E.L. is not mollycoddled at all. The fact of not raising the rates, because the way it was put just now is as if we are not raising the rates because somehow the government will step in and help us. That is not true. We don’t get any loans from government, they give guarantees because the international financial institutions require those guarantees, but B.E.L. stands on its own two feet because, of course, we depend on our customers. So you were talking about twelve point five percent and so on stakeholder investment, well it’s a hundred percent that we depend on you all, our customers. So that is what drives us and that is why we would not want to increase electricity rates.”
John Avery
John Avery, Chairman, Public Utilities Commission
“I could clarify something there? No we’re not fighting, I just want to clarify in case anyone else has the wrong impression. All I am saying is, the point I was making is that there is a small financial penalty that the P.U.C. can impose may not have the desired effect when, for example, B.E.L. is foregoing recovery of tens of millions of dollars. That was simply the point I was making. I was not saying it was government who is going to carry B.E.L.”
