Belize's main power company wants more room to pass higher costs onto customers. On October 28, Belize Electricity Limited (BEL) confirmed it has asked the Public Utilities Commission to raise the ceiling on its Cost of Power Adjustment (COPA) mechanism from 5% to 10% of the approved Reference Cost of Power. If approved, the Mean Electricity Rate could shift by up to roughly 3 cents per kilowatt-hour, versus the current cap of about 1.5 cents.

The company blames a squeeze it says it can't absorb under existing rules: electricity imported from Mexico has stayed expensive, hydroelectric output at home has fallen short of expectations, and temporary diesel generation is being used to keep the grid stable. BEL buys a large share of its power from Mexico's CFE, and reports suggest the utility is under real financial strain — enough that CFE could temporarily cut supply if BEL misses debt payments. Executive Chairman Ambassador Lynn Young addressed the issue at a virtual press conference on October 28.

The impact would be uneven. Households using $200 or less per month — who also pay no 12.5% General Sales Tax on electricity — would see minimal change, according to BEL. Commercial customers and heavier users could face bills 5% to 7% higher. The government is also stepping in financially: through the purchase of 8,138,020 preference shares at $9 each, the Government of Belize is putting about $73 million into the utility. Public Utilities Ministry CEO Dr. Leroy Almendarez said other options, including tariff hikes and commercial borrowing, were weighed, and that no load shedding is expected for now.

On Ambergris Caye, residents aren't thrilled. One San Pedro entrepreneur said his bill doubled from $400 to over $800 during a month he was barely home, and others worry that higher power costs will push up prices for goods and services across the island — a real consideration for visitors, since accommodation, restaurants and tours all absorb those costs.

The PUC has the final say and is accepting written public comments by email at info@puc.bz until 4 p.m. on November 17, 2026.

Why it matters for travellers: Belize isn't getting cheaper. Rising operational costs on Ambergris Caye and elsewhere in the country tend to show up in room rates, dive trips and restaurant menus. If you're planning a Belize trip, budgeting a little extra cushion — especially for island stays — is a sensible move. Source: San Pedro Sun