PUC Yet to Decide on BEL’s Request to Double COPA

The Public Utilities Commission (PUC) has not yet decided whether to approve Belize Electricity Limited’s (BEL) request to double the Cost of Power Adjustment (COPA) from 5% to 10%. The proposed change comes as BEL faces higher costs for purchasing electricity, particularly from diesel generation, which has become necessary to maintain the country’s power supply during shortages from Mexico.

Leroy Almendarez, Chief Executive Officer of the Ministry of National Security, Energy and Ports, said BEL has been spending close to two million dollars a month on diesel generation, adding to its overall cost of supplying electricity.

He said that BEL needs sufficient cash flow to continue purchasing electricity from suppliers including CFE, Hydro Belize, BSI, Santander Co-Generation and other providers.

If PUC approves the COPA increase, the adjustment could move from approximately 1.5 cents to three cents per kilowatt-hour per month. However, Almendarez recognised that any increase would add pressure to household expenses, particularly at a time when the cost of living remains a major concern.

The COPA is intended to reflect changes in the cost of power that BEL purchases from its various suppliers. Almendarez explained that the adjustment is reviewed based on the average cost of power over a six-month period, using an established reference cost of approximately thirty cents per kilowatt-hour.

Meanwhile, CEO Almendarez also revealed that at a technical meeting on 30 October, Mexico proposed a payment plan for what BEL owes. He said BEL was satisfied it could meet it.

The two countries have also agreed to set up working groups to share data on demand and supply. Almendarez says that means “warnings will come much earlier.” He said this will give Belize time to switch to its own generation before cuts happen. Belize also asked whether Mexico could eventually sell it more than the current 55 megawatts.

In the meantime, diesel fills the gap. “At least for the next six months, we will be using the diesel, the more expensive,” Almendarez said.

According to Almendarez, the last figures indicated that BEL is spending about $1.4 million to $2 million a month on diesel.

BEL has planned solar and battery expansion for 2027.

Prime Minister John Briceño told News 5 on Tuesday that the government will not allow the company to pass the full cost of expensive diesel on to consumers.