September 19, 2008

The Public Utilities Commission has implemented a new rate setting methodology as it relates to the cost of power Belize Electricity Limited pays and charges to customers. Prior to this new rate setting methodology Belize Electricity Limited had to wait until the annual rate review proceeding to recover cost or make adjustments to rates charged. Effective September 1st, these adjustments will now be made on monthly basis when necessary. As explained by the Public Utilities Commission, while they expect that the cost B-E-L pays for power may vary from month to month and what it collects from consumers, the Reference price of power will be set so as to balance out such variances over the period for which it is set. The reference price of power set by the Public Utilities Commission for the period July to December 2008 is 31.2 cents. With this new methodology, if the reference cost of power exceeds that amount by 10 percent or more then BEL will pass on that increase to the customers; if that amount goes below 31.2 cents then based on the discretion of the PUC, BEL will have to credit that amount to the consumers. The result of applying the new RSM is that there will be no Cost of Power Recovery rate applied to consumersí bills for the month of October, 2008. The approved tariffs contained in the Final Decision of June 26, 2008, continue to apply. A detailed description of the new methodology is available on the commissionís website at

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