BELIZE · ELECTRICITY
Key Facts
- The country Belize is a tourism-driven English-speaking nation of about 419,000 people that buys much of its power from Mexico.
- Why it matters Higher power costs would reach hotels, rental owners and retirees, and a US-funded energy program is involved.
- Why now The utilities regulator opened public comment on 27 October 2026; comments close Tuesday, 17 November.
- What happened The national utility asked to double its monthly cost-of-power add-on cap to 1.5 US cents per kilowatt-hour.
- What it means for you The add-on stays at 0.76 US cents for November; the Prime Minister signals Cabinet opposition.
Belize Electricity Limited (BEL), the national power utility, has asked the country’s utilities regulator to double the cap on a monthly cost-of-power add-on to customer bills, from 5% to 10% of a reference cost. If approved, the most the add-on could add would rise from 0.76 US cents to 1.5 US cents per kilowatt-hour, a charge that falls on hotels, rental owners and households across Belize.
Prime Minister John Briceño told reporters on Thursday, 29 October 2026, that the Cabinet is “going to discourage” the request. The regulator, the Public Utilities Commission (PUC), has not ruled and is taking written comments until 4 p.m. on Tuesday, 17 November 2026.
In Plain English
The Cost of Power Adjustment (COPA) is a monthly line on electricity bills that moves up or down with BEL’s power purchase costs. The Regulatory Sandbox is a trial, set by the PUC for the tariff year from 1 July 2026 to 30 June 2027, in which the PUC tests the monthly adjustment under a cap.
The Belize dollar is pegged at BZ$2 to US$1, and every conversion in this article uses that rate. CFE is Mexico’s state power company, the Federal Electricity Commission, which sells electricity to BEL.
What BEL Asked For
In a letter dated 23 October 2026 to PUC chairman Dean Molina, BEL asked for the cap to rise to about 1.5 US cents (BZ$0.0301) per kilowatt-hour. The current cap of 0.76 US cents (BZ$0.0151) equals 5% of the reference cost of power, which the PUC set at 15.1 US cents (BZ$0.3011) per kilowatt-hour.
The PUC published the request on 27 October 2026 and, in a separate decision that day, kept the add-on for 1 to 30 November 2026 at 0.76 US cents (BZ$0.0151) per kilowatt-hour. That charge applies to every customer category except the Social Rate.
Why BEL Says the Cap Is Too Low
BEL’s letter lists four monthly filings in which the adjustment it needed ran above the cap, rising from 2.5 US cents (BZ$0.0498) per kilowatt-hour for August 2026 to 5.3 US cents (BZ$0.1067) for November 2026. It estimates the shortfall at about US$8.43 million (BZ$16.86 million) over those four months.
The PUC’s own calculation shows the actual cost of power ran 5.1 US cents (BZ$0.1013) per kilowatt-hour above the reference cost between April and September 2026. At 5% the cap lets about 15% of that gap through, and at 10% it would let about 30% through.
BEL says the average hourly price of power from CFE climbed from 8.6 US cents (BZ$0.171) per kilowatt-hour in January to 31.2 US cents (BZ$0.624) in September. CFE still supplied 47.6% of Belize’s electricity from April to September 2026, the PUC decision shows.
Hydropower has also fallen short, at about 80.97 gigawatt-hours against a 100-gigawatt-hour threshold that would cut the applicable energy tariff by more than half. BEL also reports 24 curtailment events by Mexico’s CFE in August and September, mostly in the evening peak.
What the Prime Minister Said
Briceño said diesel prices have more than doubled since the war in the Middle East began, and that the state owns BEL, so he rejects the word bailout. He added that the monthly adjustment lets prices fall as well as rise without a months-long review.
He said BEL has signed solar contracts averaging about 6.5 US cents (BZ$0.13) per kilowatt-hour, against diesel power that at times costs 40 US cents (BZ$0.80), with the first plant hoped for by December or January. BEL chairman Lynn Young said about US$10 million (BZ$20 million) is overdue to CFE, partly because the company cannot easily obtain US dollars.
The US Link
The United States is involved through the Millennium Challenge Corporation (MCC), a US government aid agency, which signed a compact with Belize in September 2024 that includes a US$125 million grant and nearly US$55 million from Belize. The energy part of the program pays for a high-voltage submarine cable to Ambergris Caye, the island that holds San Pedro, and requires competitive procurement for new power purchase agreements.
Briceño said US embassy and MCC officials told him in January that buying solar power outside those rules could put the compact at risk, before the government declared an energy emergency. The MCC says the project is meant to lower electricity costs for all grid-connected households and businesses.
What It Means for You
For US travelers nothing is decided, because the add-on stays at 0.76 US cents (BZ$0.0151) per kilowatt-hour for November bills and the PUC has approved no rise. For every 100 kilowatt-hours a customer uses, the most the add-on could rise is US$0.75 (BZ$1.50) a month, which hotels and rental owners might pass on.
Owners of Belize property and retirees can send written comments to the PUC by Tuesday, 17 November 2026; this guide to the Belize economy and its key players lists the institutions involved. The chief executive of the energy ministry, Leroy Almendarez, said in late October that Belize has had no load shedding in recent weeks, though it is burning more costly diesel.
What Is Not Known
The PUC has not announced when it will rule, and it is not known what BEL would do if the cap stays at 5%. Under the sandbox rules, amounts left uncollected because of the cap are to be addressed at the next annual review.
It is not known how the government will fund BEL or how much of the overdue CFE balance it will cover. Nor is it confirmed that the solar plants will start on time at the prices the Prime Minister gave.
Frequently Asked Questions
What is the Belize electricity cost-of-power cap?
It limits how much Belize Electricity Limited can add to or subtract from customer bills each month to cover changes in its power purchase costs. The current limit is 5% of the reference cost, or 0.76 US cents (BZ$0.0151) per kilowatt-hour.
Will US tourists in Belize pay more for electricity?
Only if hotels and rental owners pass on higher costs. The regulator has not approved any increase, and the November 2026 add-on stays at 0.76 US cents (BZ$0.0151) per kilowatt-hour.
When will Belize decide on the request?
The Public Utilities Commission takes written comments until 4 p.m. on Tuesday, 17 November 2026. It has not announced a decision date.
Does Belize import electricity from Mexico?
Yes, in large part: Mexico’s state power company CFE supplied 47.6% of Belize’s electricity from April to September 2026. The rest came from hydropower, fuel-fired plants and other local generators.
Sources: Public Utilities Commission of Belize, public notice on BEL’s request, 27 October 2026; BEL letter to the PUC, 23 October 2026; PUC Decision and Order, COPA tariff for November 2026, 27 October 2026; Millennium Challenge Corporation, Belize Compact; Central Bank of Belize, Monthly Economic Highlights, August 2026 (exchange-rate peg); Statistical Institute of Belize (population estimate, July 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief