PUC Approves Initial Power Rate Increase, BEL Says It’s Not Enough

Belizeans will begin paying higher electricity rates in January 2026, after the Public Utilities Commission (PUC) approved the initial power rate increase requested by  Belize Electricity Limited(BEL). BEL has agreed to implement the increase but warns it may not be enough to keep the country’s power supply financially sustainable.

Under the PUC’s initial decision, electricity rates will rise by $0.0337 per kilowatt hour over 30 months, far below BEL’s request for $0.0549 over 24 months. That difference leaves the company with an $18.8 million shortfall, which BEL insists was “prudently incurred” to maintain reliability during severe supply constraints.

In a letter to the PUC, BEL outlined the financial pressures it faces: $52.5 million owed to independent power producers, $92 million in local debt, and $82 million in debt service due by 2027. The company also spent more than $80 million on emergency gas turbines to avoid blackouts.

One of the most expensive projects, the San Pedro Gas Turbine, cost $56.1 million and faced delays, but BEL says it was unavoidable. “Without these investments, Belize would have faced two hours of daily blackouts,” the company warned.

At the same time, BEL acknowledged missed opportunities. Delays in planned solar projects, the company said, cost consumers an estimated $53.6 million in savings by 2025. Had those projects been completed on time, BEL says profits would have increased, and debt levels would have fallen.