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BEL complains "rates power Mexico, which are indexed oil prices, have escalated more than 50% year."

"There real danger BEL would have approach PUC an increase electricity rates if oil prices continue climb NRDC [the US-based National Resource Defense Council] succeeds delaying Chalillo project further," BEL's Chief Executive Officer, Lynn Young, quoted saying recent company press release.

The Belize Alliance Conservation NGO's (BACONGO), backed NRDC, February filed lawsu against National Environmental Appraisal Committee Department Environment, claiming had not followed procedure when approved Environmental Impact Assessment Chalillo last November.

The 7MW, US$30 million Chalillo hydroelectric project, which developers said have come on stream ten months ago, has been stalled legal battle.

In July last year, Young told Amandala if not proceed with Chalillo due time, electricity rates would have go up.

When BEL considering rate increase last year, had entered into an agreement with Government defer recovery $4.6 million said had passed on customers because rising oil prices. That figure has grown significantly since then, BEL reports, but electricity rates can only go up if PUC approves formal request BEL recover increases have so far been absorbed company.

Dr. Gilbert Canton, PUC chair, told Amandala evening electricity rates are fixed June 1, 2002 July 3, 2003, cannot changed. Canton said last affirmed value BEL's rate stabilization account $11.4 million, PUC would decide whether would approve rate increase when account reaches $15 mn. One BEL source indicated, however, account already has grown excess $15 mn.

BEL Government agreed last year establish rate stabilization account absorb price increases would otherwise have had passed on consumers.

Young had previously told Amandala BEL GOB had agreed defer rate increases until Chalillo comes into operation, which BEL claims would minimize rate increases.

Last April, Government Belize passed statutory instrument limited average electricity rate 36 cents per kWh until 2002. Social rate customers, who use less than 50 kWh, pay 21 cents per kWh, residential customers who use over 200 kWh, pay 41 cents per unit. rates are different commercial industrial customers.

The last rate reduction residential consumers came 1999, BEL had committed 1 cent per kWh reduction each year (in transmission/distribution charges only), but consumers may never see long oil prices continue rise.

Canton indicated when cost power BEL purchases its suppliers increases, value rate stabilization account increases. Since beginning financial year, cost power Mollejón has increased 1.5%, Canton informed, due clause an agreement between BEL its supplier sister company, Belize Electricity Company Limited, signed 1996.

He further explained recent move open industry independent power providers (IPP's) guided price concerns also. PUC has approved two bids - proposal 2.2 MW Hydro Maya, another Belize Sugar Industries' BELCOGEN bagasse project. However, final negotiations would carried out between BEL approved bidders arrive better prices.

BEL says power Chalillo would cost half rate being offered IPP's.

While introduction power new renewable energy options like bagasse small hydro, would not bring down costs, Canton affirmed Chalillo would reduce multi-million dollar rate stabilization account significantly.

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