On October first, BWS submitted its five-year Business Plan to the Public Utilities Commission, at the same time entering into a Full Tariff Review Proceeding.
And it's making news because it asks for a 20% increase in rates to support a planned $130 million capital program.
The company has not gotten a tariff increase since 2015 - but, this one is a big ask. Today we spoke via zoom to the chairman in the presence of his Chief Operations Officer. We asked him what the company will do if it doesn't get that 20% increase - because in some quarters of the media, it has been said that without the increase, BWS cannot sustain operations or fund critical upgrades. Here's what he said:
Jules Vasquez
"The interpretation has been taken that if you all don't get this increase that BWS will run out of money. What's your response to that?"
Cornelio Acosta, Executive Chairman, BWSL
"I think that the the heading was a bit misleading. BWS is a financially stable, in fact one of the most of the most financially stable water utility in the Caribbean region."
"We are, I think one of two utilities that actually makes a profit and does not rely on central government for any subsidies. What we were putting in our document in our business plan is that going forward due to inflationary pressures that we've been feeling since 2020. Capital expenditure projects, these major expansions, these residential areas that are popping up throughout the country. So all these expansions require a lot of capital expenditure and for us to be able to do these major projects of course we will need some influx of revenue."
"As it is, production or production costs has increased about 8.2 percent since 2020. Distribution of water has increased another 6.2 percent. We also did a cost escalation on materials and projects and what was found though is that since 2020 to 2024 materials have gone up by 95 percent. The cost of materials has gone up by 95 percent."
Jules Vasquez
"You all have asked for a 20 percent increase. Will your operations remain sustainable if you you don't get that level of increase?"
Cornelio Acosta, Executive Chairman, BWSL
"The operations can remain sustainable. What you will see is definitely a decrease in terms of water expansions. Also, when you look at other projects that may be beneficial in terms of not only expansion, but expanding storage capacities, when you look at expanding redundancy wells, for example."
"So these are some of the things that may need to be curtailed. But definitely in terms of operational expenditure, BWS can finance that, can sustain that. These are primarily capital projects that now are required from BWS by its consumers."
"What we are also looking at now is a more equitable tariff structure. And also incorporating a social block component, where we now would definitely look at the social needs of our consumers and how we could assist with that."
"Now, it's not all about just increasing tariffs. BWS is always looking at ways on how to reduce costs, maintain tariff stability, or in some cases reduce tariffs, the tariff that is being charged. I guess the natural reaction to everyone, and we're all consumers, is that we wouldn't want to see a tariff increase, but I think our job now is to convince the public that while a tariff increase is necessary, it does not necessarily mean that it's going to be a tariff that is going to remain there in perpetuity or expecting perpetual increases. In the past, BWS has seen tariff decrease in the periods where the business plans have been submitted."
"So in 2012, they had a tariff decrease. So there have been instances, but our job is now to explain to the public why the tariff increase is required, what our plans for expansion, what we have done in the last five years and show the growth potential for BWS."
And if you want to make your feelings on the proposed increased known, the PUC is holding a public hearing on Friday, October 17, 2025, at the Biltmore Plaza in Belize City, starting at 6:00 p.m. where meeting, BWSL will present its Business Plan to the Commission.
