Banner
Light Bill Going DOWN Again!!!! Print E-mail
( 0 Votes )
Written by Shane D. Williams   
Monday, 30 December 2013 00:00

On January 1st electricity rates will be reduced by as much as eight percent. This is the second consecutive tariff review procedure in which electricity rates will be reduced. On April 2 of this year the Belize Electricity Limited submitted an application to the Public Utilities Commission requesting a reduction in the Mean Electricity Rate (MER) of approximately 1 cent per kilowatt hour. That meant that residential customers’ rates decreased from approximately 49 cents per kilowatt hour to 48 cents per kilowatt hour of electricity. This reduction was necessary in order to “reflect the actual Cost of Power since January 2013 compared to the projected cost submitted to PUC in December of 2012”. Since that tariff review proceeding was executed, cost of power continued to decrease and B.E.L. has now applied to the P.U.C. requesting an even greater rate reduction for the 2014 Annual Tariff Review Proceedings.

On December 10th, the Belize Electricity Limited submitted an application to the Public Utilities Commission requesting a decrease of three cents per kilowatt hour in the Mean Electricity Rates, which is currently set at 48.65 cents per kilowatt hour. After the P.U.C. reviewed the actual cost of power from July to December of this year, it decided that a four cents decrease would be more fair to customers. Derrick Davis, Electrical Engineer at P.U.C., said the commission took a number of things into factor before deciding on the rates. One is that cost of power from Mexico’s Commision Federal de Electricidad (CFE) returned to pre 2012 level at around 30 cents per kilowatt hour instead of the 37 cents averaged in 2012. Secondly, hydroelectric production has increased due to heavy rainfall in the region resulting in greater power generation by BECOL. Davis also explained, “Prime Minister and Minister Grant and our team negotiated a 10% reduction from CFE Mexico.  So, that will impact the rates of next year.”
The decrease from 48.65 cents to 44.65 cents per kilowatt hour in terms of percentage is a decrease of 8.22%. The new rate goes into effect on January first, 2014.

Last Updated on Monday, 30 December 2013 13:34