Last month the Chief Justice ruled that the Public Utilities Commission has the power to set rates on utilities and to order those companies to pay refunds for illegally charged rates.
That ruling placed the matter of a $60 million refund for consumers from BTL squarely in the PUC's lap. Well tonight, the news is that it's not moving form there anytime soon. In the quite extraordinary purchase agreement, government gave BTL's new owner Jeffery Prosser indemnity in any judgment against BTL - which means that if there's a refund government would have to pay it with your money, of course.
With that, today Prime Minister Hon. Said Musa told us that when it comes to a refund, it's a whole new ball game and don't expect a consumer slam dunk, because the PUC will most certainly drop the ball.
Alfonso Noble,
"In the agreement there is a 'no indemnity' clause for any liability BTL might have to pay in the lawsuit brought by consumers for the illegal rates where they overcharged customers..."
Hon. Said Musa, Prime Minister
[Interrupting] "You are really looking for something where there is nothing there. The truth is, all the agreements, all the disputes that we had with Carlisle they created all these problems in the courts with the PUC tying up the government of Belize. They then tried to frustrate BTL by going all the way to the Privy Council. All that will now fall apart because the agreement on both sides is that those claims will be dropped. Now in the case of the one case that you mentioned in which the PUC sued in respect of rebalancing - that case was heard by the supreme court."
Alfonso Noble,
"What are we to expect from the PUC now?"
Hon. Said Musa,
"Well the PUC has to respect the decision of the court and it was unreasonable to be promising people that they would getting rebates when the truth of the matter is that when you analyze carefully BTL would gain if the court were to find that there was to be going back to the old rate. Many people who had received reductions would have to pay back BTL. So that matter is now ended."
Alfonso Noble,
"But as much as there people who received reductions, there are people who received increases and the argument is that if it is a reduction to my cost it is your bad and a company should be responsible for those. And you can't unilaterally increase prices and expect consumers to pay illegally."
Hon. Said Musa,
"Fair enough but the government allowed the matter to go to court and I am saying we did not sign any agreement until that decision was settled in the Supreme Court of Belize."
Alfonso Noble,
"Will the PUC continue to pursue it because now it is squarely on their shoulders. That is what the judgment said - the PUC has the right and ability to pursue the matter. Will they continue to do so?"
Hon. Said Musa,
"I think that clearly the chief justice was pointing out that when it comes to setting rates that is the jurisdiction of the PUC and they will clearly continue to do that - setting rates..."
Alfonso Noble,
"But specifically..."
Hon. Said Musa,
"...The claim has been decided upon and the sooner you accept that the better. You don't respect the decision of the Supreme Court? Is that what you are saying?..."
That we can't expect much from the Public Utilities Commission in seeking a refund - should be crushing but not altogether unexpected news for the 1200 consumers who had written to the PUC asking for a refund.