Government’s Fortis Acquisition Raises Serious Questions

The government’s acquisition of Fortis Belize Limited has sparked plenty of debate in both the House and the Senate. We’ve heard the arguments, the concerns, and the promises, but what does this move mean for you, the consumer? Could it lead to cheaper electricity? Today, we put those questions directly to Andrew Marshalleck, Chairman of Belize Electricity Limited, to get the company’s perspective. Here’s what he had to say.

 

Andrew Marshalleck, Chairman, Belize Electricity Limited

“From BEL’s perspective, the company’s perspective, nothing changes. BEL has a long-term power purchase agreement with Fortis Belize Limited, which is now to Be Hydro Belize Limited. It has quite a few years left on it. Nothing changes with that supply agreement, power purchase agreement. AS I understand it the only change is the escalation clause which increase the prices overtime, because it was originally a fifty years agreement, so you don’t lock into any one price for the fifty years. You allow the price to go up as time passes, those clauses will be done away with, which means we will benefit from a lower fixed price going forward. So that is good from BEL’s perspective. From BEL’s perspective it is also good that we no longer has to source foreign currency to pay those bills. So, that relieves us. And it does not impact on BEL’s operations. BEL management remains the same. The board of directors will see a change with three of twelve directors but the majority of board remains the same. All policies and operations remains as it was before.”

 

Paul Lopez

“Could this translate into cheaper electricity for Belizeans?”

 

Andrew Marshalleck

“Not in the medium term. What has happened is that since COVID, in the years following COVID Belize has been carrying the cost, an excess cost of electricity over and above what Belizean pay for it, for the benefit of the whole. Those short falls will have to be met going forward, and while cheaper rates will allow better margin, those margin will have to reach back to cover the shortfall that have already been incurred. So that it will be sometime going forward that you will see any reduction in rates.”