Briceño says GOB Won’t Let BEL Pass Full Cost to Consumer
Prime Minister John Briceño says Belize Electricity Limited (BEL) is losing money, but the government will not allow the company to pass the full cost of expensive diesel on to consumers.
“BEL continues to bleed.”
Briceño said that as a private company, BEL is allowed by law to pass the full cost of electricity on to consumers. But the Prime Minister said the price of diesel and a shortage in Mexico have driven the cost of producing power up sharply.
“It’s costing us over $0.80 per kilowatt hour because of the high prices of diesel, the shortage in Mexico.”
The Prime Minister said consumers pay about 60 cents. He said the government cannot let the company pass on the difference. “We, as a government, cannot allow BEL to pass that on to the consumers.”
He said the government is looking for what he called innovative ways to hold the cost, as part of its effort to address the cost of living for citizens. “By prepayments, preference shares, and other ways whereby we can be able to keep them going.”
Briceño said BEL has a plan and has already signed with a few companies to bring in solar energy. The second step, he said, is solar energy with batteries. “With the batteries, during the day, we can charge it, and then at night, put it onto the system when the price is highest.”
The Prime Minister said this would lower BEL’s costs considerably.
BEL is projecting a return to profit. Briceño said the company’s projections show a small profit by the end of next year and a larger one the year after, if things work out the way BEL believes they will.
When that happens, he said, the government will be able to do two things. It will get some of the money back and put it into the consolidated fund. It will also be able to look for ways to bring down the cost of production.
Briceño used a martial arts comparison to describe the approach. “You have to do jiu-jitsu when you use the energy of your opponent against them.”