B.E.L. formally objects to P.U.C. rate decision

It does not come as any surprise but Belize Electricity Limited has submitted its formal objection to the Initial Decision made by the Public Utilities Commission. Viewers may recall that B.E.L. had applied, as part of its Annual Tariff Review Proceeding, for rate increases averaging thirteen point four percent and the P.U.C. subsequently rejected that request. In following the rate setting process B.E.L.’s next step was to submit its objection which is based on the following points.

– The P.U.C. has changed its rate setting methodology and applied it retroactively in violations of previous agreements.

– The price of oil has increased far beyond the projections made in the application and B.E.L.’s cash flows will be even more strained than indicated in the application.

– The P.U.C.’s decision has lowered B.E.L.’s rate of return on assets to eight point five percent which is less than a fair return.

– The recovery component on the Rate Stabilization Account is not sufficient to reduce the R.S.A. balance to zero as required by law.

Under its procedures the P.U.C. now has twenty days to appoint an independent expert to review the Initial Decision and within twenty days of that appointment the expert must submit a report. While the expert’s advice is taken into consideration, those findings are not binding on the P.U.C.’s Final Decision, which must come within ten days. Any rate change would go into effect on July first.