BEL Seeks Two-Year Rate Increase to Recover Rising Energy Supply Costs

Belize Electricity Limited has asked the Public Utilities Commission to approve a 5.55-cent increase in the average electricity rate; however, the proposal aims to recover nearly three years of uncollected energy costs and prepare the grid for higher demand.

The company’s application outlines an accumulated BZ$87.5 million in supply costs from July 2023 to October 2025 that were not recovered under existing tariffs. An additional BZ$20.9 million in projected energy costs between November 2025 and June 2026 is also unfunded under the current rate structure. BEL says the requested adjustment would stabilize cash flow needed to meet operational requirements and sustain critical grid investments.

The proposal addresses several supply-side pressures expected in early 2026. BEL anticipates a seasonal rise in energy demand during the warmer, drier months, which would force greater reliance on costlier generation sources, including gas turbines. The company is also preparing to deploy temporary generation units to meet demand until new medium-term capacity projects come online. Higher electricity import prices from Mexico’s CFE between April and July are forecast to add further cost pressures.

To limit consumer impact, BEL recommends phasing the rate increase over a two-year period. The company argues that spreading out the adjustment would balance the need for revenue to maintain safe and reliable service against the national priority of keeping electricity rates affordable and predictable. The press release stresses that even with the proposed increase, BEL would remain the lowest-cost electricity supplier in Belize and among the lowest in the Caribbean and Central America.

BEL notes that changes in electricity rates affect households, businesses, and community planning across the country. The company frames the adjustment as necessary to maintain reliability, strengthen the grid, and support national development efforts through stable energy delivery.