Electricity Rate To Increase In 2026

The Public Utilities Commission (PUC) has issued its initial decision proposing an increase in electricity rates as part of amendments to the Belize Electricity Limited (BEL) Annual Review Proceeding (ARP) 2025 Final Decision.

In a public notice, the Commission said it has completed a final draft of proposed amendments in accordance with the Electricity (Tariffs, Fees and Charges) Byelaws. BEL had requested an increase to the Mean Electricity Rate (MER) of $0.0555 per kilowatt hour. After its review, the PUC is proposing a smaller increase of $0.0337 per kilowatt hour.

If approved, the increase would result in a new MER of $0.4427 per kilowatt hour. The Commission said the proposed rate hike is intended to address BEL’s financial challenges and allow the company to recover the reasonable cost of providing electricity services.

The PUC also stated that it took into account the impact on consumers, particularly social and residential customers who fall below the GST threshold. According to the Commission, the increase to the MER will be distributed among consumers in a manner aimed at minimizing the impact on household electricity bills.

The proposed increase was addressed by Prime Minister John Briceño during last week’s sitting of the House of Representatives, where he defended the need for higher utility rates in light of rising costs and regional market pressures.

“When it comes to the utilities, Madam Speaker, one of the things that the Honorable Member from Mesop did not put into his presentation with BWSL is that BWSL has an expansion program of about approximately over $135 million to expand water to our people, especially to poor people who need the service. And then somebody has to pay for it. All of us have to pay for it,” Briceño said.

Speaking directly about electricity, the Prime Minister noted that BEL had not requested a rate increase since the government took office in 2020, despite significant increases in operating costs.

“I have said over and over with BEL from 2020 when we got into government, BEL has not asked for a raise in rates. COVID inflation, the heat waves that hit us in 2024 at one time Mexico was selling us a kilowatt of electricity at $1 US,” he said.

Briceño explained that during periods of supply disruptions and high import costs, BEL worked with major consumers to reduce strain on the national grid.

“And when they were cutting off this service to us, BEL had to talk to the big consumers, especially like in San Pedro, the tourist area, that who had their own generators. We asked them, BEL asked them cut off on the grid, and then you put on your generator and we will pay the difference because the price is way much higher than what BEL sells,” he said.

Acknowledging public resistance to higher electricity costs, the Prime Minister argued that Belize’s rates remain lower than those in many Caribbean countries.

“Now, nobody wants to hear about the price going up, but when you look around, especially the Caribbean, we are way cheaper than them when it comes to electricity,” Briceño said.

He added that BEL has been selling electricity below cost, a situation he said is unsustainable.

“But the time comes BEL has been selling its electricity cheaper than what it cost to buy,” Briceño said.

Speaking to Mesopotamia Area Representative Lee Mark Chang, the PM said, “You will not sell your fried chicken for less than what you pay for the chicken, right? Because you have to make a profit. And that is exactly what is going on with BEL.”

“We do not like the idea of raising the prices but if we do not then we the taxpayers will have to pay for that because then they come to us and say, well we need the money. And so where will it come from? It will come from the taxpayers,” he said.

“So as much as we don’t want to we have no other option. We held them down for five years. But now the time has come where unfortunately, we have to do this.”