So, we go now to the part of the conversation with the BEL Chairman on the Running Regulatory Balance. As we told you, it's a sort of bill that the PUC keeps track of.
If the cost of power is higher than forecasted, it means that customers are getting electricity cheaper than what the price should be. The difference is then booked as a sum that customers owe BEL, which will have to be collected at some point in the future. On the other hand, if the cost of power is lower than the two sides forecasted, then it means that BEL overcharged customers, and the electricity rates will have to be decreased to pay you back.
Here's or back and forth with Marshalleck on their justification that the regulatory balance should increase by some 43 million dollars:
Daniel Ortiz
"The best case scenario, if the PUC had accepted the reasoning of BEL, what would that regulatory balance line item say on cost of power?"
E. Andrew Marshalleck, SC - Chairman, BEL's Board of Directors
"That's what we are talking about, its 28.467 million dollars and they're saying it should only be 4 million dollars. That's what you're talking about. You're talking about a book entry something carry forward that wont affect the past. What has happened has happen. You already taken the electricity and used it and its already cost what it in fact cost. Quibbling now over how you calculate the difference between the actual cost and what they projected. They're suggesting that the variance isn't as much as 28 [million] and should only be 4 [million]. What I'm telling you is what's important is the rates that you get to pay in the year coming up, because that is what will impact Belizeans at the end of the day and while the regulatory account balance will figure into those calculations, the intention of BEL is to seek to keep rates just as they are as long as we are able to, because that's one of the roles that we see. One of our overriding missions is to provide electricity and assist with sustainable national development. Not to retard it and we do that by creating a favourable environment for economic activity and for people to maintain their standard of living and that is trying to keep the rates as low as they can be. So we share that goal with the PUC and the idea that they need to be rocking us on the knuckles to pursue that goal - well that might be the conceptual function, but in reality during the period under review, BEL was the one that was insisting on the lower rates."
Daniel Ortiz
"Provided that the regulatory balance goes up."
E. Andrew Marshalleck
"The regulatory balance will always be there into perpetuity. Its just managing the figure and keeping it within acceptable limits. There is never a day while I come to you as say pay me the amount in that account. You see what it is, is that the regulatory environment seeks to mimic what the market would achieve if there was competition and that is done in a lot of instances based on opinions and projections and forecast which change with who's looking at it."
