BEL Submits 2013-2014 Annual Tariff Review Proceeding Application to PUC
Belize Electricity Limited (BEL) submitted an application on April 2, 2013, to the Public Utilities Commission (PUC) under the Annual Tariff Review Proceeding (ARP) for the period July 1, 2013 to June 30, 2014.
In the application, BEL requests that the PUC reduces the Mean Electricity Rate (MER) by approximately 1 cent per kilowatt hour (kWh) to reflect the actual Cost of Power since January 2013 compared to the projected cost submitted to the PUC in December 2012. BEL is also proposing to reduce its targeted Rate of Return from 10 per cent to 9 per cent, made possible subsequent to the recent reduction in the Company’s financing costs.
While the Cost of Power challenges remain as last reported by BEL in December, the amendment to the MER in January 2013 has enabled the Company to meet its payments to suppliers.
In order to achieve the MER that went into effect as of January 1, 2013, BEL had to reduce its Value Added of Delivery for the period January to June 2013. This minimized the burden of high cost of power on customers and, as we had communicated to the PUC in December 2012, our intention was to gradually recover the shortfall in VAD in subsequent tariff review proceedings. This current ARP application does not contemplate the recovery of this shortfall, unless cost of power returns to lower levels.
Copies of BEL's submission are available at its Corporate Headquarters, located at 2½ Miles Northern Highway, Belize City and its branch offices countrywide. The submission is also available for viewing at the office of the PUC located at 41 Gabourel Lane, Belize City.
In January the PUC ordered a whopping 17% increase in average electricity rates. Well now, BEL is asking the PUC to lower the rate just a little. The power company made this application in its Annual Tariff Review Proceeding for July first, 2013 to June 30th, 2014.
BEL asks the PUC to reduce the average Electricity Rate by about 1 cent per kilowatt hour - which would bring the residential rate down to about 48 cents per kilowatt hour - still a long ways off form the 41.6 cents per kilowatt hour it was at in 2012.
BEL says the modest decrease is a reflection in a slightly cheaper cost of power. BEL is also reducing its Rate of Return from 10 per cent to 9 per cent, after reducing financing costs.
The PUC will now make its own review and recommendation.