Belize Electricity Limited (BEL), the nation’s primary power distributor, has formally requested its first electricity rate increase since 2030, signaling an end to a prolonged period of price stability. The company has petitioned the Public Utilities Commission (PUC) for an adjustment exceeding five cents per kilowatt-hour to address mounting financial pressures.
The PUC has counter-proposed a more modest increase of approximately three cents per kilowatt-hour, acknowledging the utility’s need for financial recovery while balancing consumer protection concerns. This regulatory response comes as BEL faces unsustainable operational costs exacerbated by global energy market volatility and persistent supply chain disruptions.
Prime Minister John Briceño provided context for the requested adjustment, revealing that BEL has been operating at a significant deficit by selling electricity below procurement costs. “BEL has been selling its electricity cheaper than what it costs to buy,” Briceño stated, drawing parallels to business fundamentals: “You will not sell your fry chicken for less than what you are paying for the chicken.”
The Prime Minister detailed extraordinary measures taken during recent crises, including negotiations with major consumers in tourist areas like San Pedro during supply interruptions from Mexico. BEL reportedly compensated businesses with generators to maintain grid stability when imported electricity costs surged to one dollar per kilowatt-hour—far exceeding domestic selling prices.
Despite the proposed increase, Belize’s electricity rates remain competitive within the Caribbean region, though this comparative advantage has come at substantial cost to the utility’s financial health. The rate review process continues as stakeholders weigh economic realities against consumer impact.