Belize Electricity Limited (BEL) has formally petitioned the Public Utilities Commission for authorization to implement a 5.55-cent average rate increase per kilowatt-hour. This strategic proposal aims to address a significant financial shortfall while simultaneously preparing the national grid for anticipated future demand surges.
The utility company’s application reveals an accumulated BZ$87.5 million in unrecovered supply costs spanning from July 2023 through October 2025 under existing tariff structures. Additionally, BEL projects a further BZ$20.9 million in unfunded energy expenses between November 2025 and June 2026. Company executives emphasize that the requested rate adjustment is essential to stabilize cash flow, meet operational requirements, and sustain critical infrastructure investments in the national grid system.
Several converging factors are driving the proposed increase. BEL anticipates substantial supply-side pressures in early 2026, including seasonal demand spikes during warmer, drier months that will necessitate increased reliance on higher-cost generation sources such as gas turbines. The company is preparing to deploy temporary generation units to bridge capacity gaps until new medium-term projects become operational. Furthermore, projected increases in electricity import prices from Mexico’s CFE between April and July 2026 are expected to create additional cost pressures.
In a measured approach to consumer protection, BEL recommends implementing the rate increase through a phased two-year schedule. This gradual implementation strategy aims to balance the utility’s financial requirements for maintaining safe, reliable service against the national priority of keeping electricity rates affordable and predictable for consumers. The company emphasizes that even with the proposed adjustment, BEL would maintain its position as Belize’s lowest-cost electricity provider and remain among the most competitive utilities in the Caribbean and Central American regions.
The utility company acknowledges that electricity pricing changes have far-reaching implications for households, businesses, and community development initiatives nationwide. BEL frames the proposed adjustment as an essential investment in grid reliability and national development, ensuring stable energy delivery supports Belize’s continued economic growth and infrastructure modernization.