GOB applies to buy power from Mexico and sell to B.E.L.

lynn Young

The Belize Electricity Limited has for years been purchasing power directly from Mexico’s Comision Federal Electricidad. But that can now change since the Government has applied to the Public Utilities Commission for a license to purchase the power for resale to BEL.  The new arrangement will be operated under the Ministry of Finance and while there have been discussions; it was raised during the official visit to Mexico, by the Prime Minister in October. Currently, BEL has two contracts with the Mexican state owned company: an economic energy agreement to purchase power at reasonable rates, and an emergency agreement where if Belize experiences electricity problems from other suppliers, CFE can provide the power on an emergency basis but at a higher price. BEL’s President and Chief Executive Officer, Lynn Young, told News Five that the government to government relationship is influencing the new arrangement.

Lynn Young, President, B.E.L.

“I think the intention by the government is to try to get better rates from CFE for customers.  I think they feel that with the government to government relationship that they have with Mexico they are in a better position to get better rates from Mexico than we are cause right now the power from Mexico is like our second highest cost of power.  The hydro is cheaper, the power from the bagasse plant is cheaper.  The other thing about it is that in 2008 when the PUC had refused to match the increasing costs, since then the banks have frozen our credits and the contract the contract with CFE that we have, we have to establish a letter of credit to buy power from CFE but we can’t because our finances have been frozen.  So since 2008 the Government has put a letter of credit in place so that we could continue to buy from Mexico.”