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Senator Tillett contends rate increase was, effect, illegal, since PUC did not follow proper procedure set out law, writing new regulations under which PUC granted rate increase, which took effect on January 1.

As highlighted week’s edition FOCUS, BEL its sister company, Belize Electric Company Limited (BECOL) are forecasted supply about 50% country’s electricity 2006. Together, will get about 60% what consumers will pay towards cost power. Much would pay expensive diesel generation—expensive, according BEL, because high oil prices.

However, Senator Tillett accused PUC colluding with BEL gouge consumers.

“The price-gouging dieseling generation BEL highlights more fundamental failure PUC recurring theme undersigned – failure Commission carry out its function given under section 6(2) Electricity Act promote competition generation,” said Senator. “The PUC continues collude with utility provider make ratepayers pay costly wholesale power, so BEL its sister company BECOL can extract monopoly profits electricity generation sub-sector detriment ratepayers.”

He contends PUC has given BEL “blank check” charge ratepayers internally produced electricity diesel-fired plants.

“The PUC must only accept reasonable costs BEL’s diesel generation,” he added.

Apart issue price gouging, Senator Tillett challenged recent passing Statutory Instrument (S.I.) PUC Minister Public Utilities, Hon. Ralph Fonseca. Interestingly, same day new S.I. passed, BEL applied its rate increase.

“The S.I. 145 2005 ultra vires Electricity Act. Certainly PUC must rescind bylaw decisions flowing it,” he said. “Therefore, means order December 31, 2005, improper…”

The pre-existing S.I. only allowed annual rate adjustments, well adjustments full tariff period every 4 years. new S.I. allows BEL apply rate increase every time cost power projections turn out off $3 million.

However, Senator Tillett contends new regulations cannot made without proper consultation with stakeholders—which include ratepayers those who use BEL’s electricity. He elaborates PUC required circulate final draft copies new regulations “any interested person.”

Without giving genuine opportunity stakeholders have an input, PUC has violated law, he contends.

“In fact, statute grants discretion interested persons demand hearing on an issue importance them public,” Senator wrote. “Clearly, language spir statute are PUC carry out genuine consultations with those being affected any bylaw, order directive, not make secret deals with utility provider minister.”

He agrees with argument put forth PUC Candy Gonzalez, vice president BELPO – Belize Institute Environmental Law Policy, manner which PUC permitted process flow did not allow meaningful public participation.

The PUC said, its part, despite publication relevant notice BEL, one wrote one called expressing any concerns during required time period 11 calendar days.

In letter dated, Thursday, January 12, 2006, Gonzalez said process public consultation “a farce.” She said Belizeans had very short time – which she estimates 3 working days, given fact done during Christmas season – review BEL’s proposals rate increase, submitted on December 20, 2005.