And the only match for Okeke in terms of volume complaints is BEL: so while he whines about a sugar shortage BEL is complaining about a cash shortage.
The company held its annual general meeting yesterday where it lamented a downturn in profits from 8.9 million dollars in 2009 to 3.4 million in 2010.

And - according to the power company - because of the meager profits it remains in breach of loan covenants - which is why it says it can't pay dividends for the third year in a row - including those to the Social Security Board, which owns more than a third of the company.

Of course, BEL is blaming the PUC, and a quote from CEO Lyn Young says that, "for the last three years it seems like the PUC has misconstrued its responsibility to balance the interest of the consumer and the Company….the PUC…seems obsessed with destroying what we have built over the last thirty years."

Strong words, but in line with the tone that Young's boss, Stan Marshall took two years ago when he said he doesn't know what the people at the PUC are smoking.

For its part, the PUC was recently vindicated in one major case against BEL when the Supreme Court found that the rate settings for the year 2008-2009 was valid and correct.

Channel 7

B.E.L.’s AGM says company loses $5 Million in profits

On Thursday night Belize Electricity Limited held its Annual General Meeting for financial year ending December thirty-first, 2010, at the Best Western Belize Biltmore Plaza. According to the utility company, its profits went down by five million dollars, from eight point nine million in 2009 to three point four million dollars. According to B.E.L., because of declining profits, it has been unable to meet loan obligations and is in fact in breach of covenants. Furthermore, it is unable to borrow and cannot pay dividends. B.E.L.’s C.E.O. Lynn Young says in a press release that “the P.U.C. has misconstrued its responsibility to balance the interest of the consumer and the Company while ensuring that Belize has a reliable and viable electric service,” and “Rather than secure that we are able to finance our activities for customers and shareholders, the P.U.C. instead seems obsessed with destroying what we have built over the last thirty years.”

Channel 5

BELIZE ELECTRICITY LIMITED SAYS IT CONTINUES TO LOSE MONEY

Belize Electricity Limited has been saying all along that it has been experiencing a cash-flow problem. When it presented its figures at its Annual General Meeting on Thursday evening, the picture did not look bright for BEL. The company revealed its profits decreased from eight point nine in 2009 to three point four in 2010. And, in a press release issued today, BEL states that if the increase in business tax had not been deferred, the situation would have been worse because the company would have recorded a loss of two point four million dollars. BEL says that the reduction in profits continues to reflect the decrease in the Value Added of Delivery component of electricity tariffs by the Public Utilities Commission, PUC, in its 2008 Final Decision. The BEL release states that because of the low profit margins, the company has been unable to meet its loan commitments and remains in breach of these covenants. BEL says it is unable to borrow and is restricted from paying dividends to its shareholders. This was something which shareholders were concerned because the last time they collected any kind of dividends was in 2008. The company, however, will continue all efforts to resolve the situation. BEL continues to rely on revenues collected from electricity sale to carry on with its business, and says that in 2010 alone, it invested forty four point three million dollars of revenues in improving its service. The increasing oil prices has also factored in significantly on the company’s pocket, with oil prices now around a hundred US dollars per barrel, and resulting in power supply from Mexico increasing by fifty one percent since this year began.

LOVEFM

BEL Holds Annual General Meeting of Shareholders

On May 12, 2011, Belize Electricity Limited (BEL) held its Annual General Meeting (AGM) of Shareholders for the year ended December 31, 2010, at the Best Western Belize Biltmore Plaza.

In 2010, the company’s profits decreased to $3.4 million from $8.9 million in 2009. Had the increase in business tax on BEL (which is fully paid to the government) not been deferred, the company would have recorded a loss of $2.4 million. The reduction in profits continues to reflect the decrease in the Value Added of delivery component of the electricity tariffs by the Public Utilities Commission (PUC) in its 2008 Final Decision.

As a result of the low profit levels, BEL remains in breach of loan covenants. The company is consequently unable to borrow and is restricted from paying dividends. During the meeting, shareholders expressed concern about the company not paying dividends since 2008. In responding to these concerns, BEL’s President and Chief Executive Officer Lynn Young explained that the company’s profits are determined by the PUC and therefore the current situation is beyond the control of BEL.

“Indeed, for the last three years it seems like the PUC has misconstrued its responsibility to balance the interest of the consumer and the company while ensuring that Belize has a reliable and viable electric service,” said Young.

“Rather than secure that we are able to finance our activities for customers and shareholders, the PUC instead seems obsessed with destroying what we have built over the last thirty years.”

Nonetheless, Young assured shareholders that BEL will continue all efforts to resolve the situation. In the meantime, the company’s main source of financing continues to be revenues generated from the sale of electricity. Young explained that while profits are low, the capital intensive nature of the electricity industry continues to require BEL to invest in its operations, in order to maintain a reliable supply of power to customers.

The company invested approximately $44.3 million of revenues in service improvement initiatives in 2010. In fact, the benefits of BEL’s initiatives were on prominent display during Hurricane Richard in 2010.

Several shareholders congratulated the company for the quick restoration of power following the storm. Young confirmed that the investments made to strengthen the power systems, yielded these positive results and also an overall reduction in the frequency of power outages by 24 per cent in 2010.

While service performance has improved, Young stated that the company is currently struggling to pay cost of power from independent power producers that supply over 99% of the total electricity needs of the country of Belize so far in 2011. This situation follows a significant increase in oil prices since January 2011. With oil prices hovering over US$100 per barrel, the cost of electricity from Mexico has increased by 51 per cent since January 2011.