The Public Utilities Commission today informed the Belize Institute of Environmental Law and Policy, BELPO, and the United Democratic Party that they will not review the final decision of the threshold event review proceedings (TERP) which gave BEL a 13% increase in the mean electricity rates. In arriving at their decision PUC Chairman Gilbert Canton says the applications simply had no merit but he was soundly challenged by UDP senator, Ambrose Tillet who showed up at today's event.
Dr. Gilbert Canton, PUC Chairman
"We have to make sure that whenever a request for review of the decision comes in that there is something that could be substantial or substantiated that gives us a reason to move on a review. So it has to be new information, information that we did not look at or consider, or something that somebody has pointed out that we made an error in these calculations, and we didn't get that kind of information. What we got was a lot of comments and views on the situation and nothing was substantiated enough that we can say we can move on."
Alfonso Noble,
Will you all be challenging any of the decisions that were made, legally, because obviously you have no recourse with them, they are not going to listen to any of your submissions.
Senator Ambrose Tillet, UDP
"To be honest with you trying to challenge this TERP in a way, legally I think it is challengeable, but from a practical point of view it doesn't really change things because this TERP was based on the cost of generation and if you don't deal with the reason why generation is so high because if BEL says I want to put up a gas turbine, the PUC approves it. BEL is able to do whatever it tells PUC to do because according to Dr. Canton, whatever BEL says he does. So if you don't deal with the inherent weakness, where BEL tells the PUC everything to do, then of course there will be a TERP every few minutes because every time the cost of diesel goes up, or the gas turbine is expensive, whatever, then you have this problem."
Alfonso Noble,
But you must at some point go to the courts or look for legal recourse for the problems you are having.
Senator Ambrose Tillet,
"The problem is that, and Dr. Canton is right, that's why he hasn't even responded to my objections anymore because when the BACONGO took them to court over the way Chalillo was done, this matter was ventilated before the courts and the courts came down in favor of the PUC. The courts gave wide discretion to the PUC and even though in that case, of the 48 megawatts that was available. BEL and its sister company, BECOL, took thirty out of the forty eight, only 18 of them was under competitive process. The courts refused to squash the decision and so based on that decision from Chalillo, that is what is driving all of this. When nobody was paying attention, they thought Chalillo was environmental and everything, it had an important legal question: can the PUC and BEL get together and say 'boy I will build a plant without completion,' and the courts basically said yes you can. And that problem has already been ventilated in the court so we're in a fix because what will you go to court for, the court has already decided this question."
Alfonso Noble,
So there's no recourse?
Senator Ambrose Tillet,
"Well the move is no change the government and put in proper people because that's the only thing now. The courts have failed us, the PUC is telling you BEL will do whatever want, so you're in a fox. We really have a problem."
Dr. Gilbert Canton,
"We have this cascading system of looking at rates and have the Full Tariff Proceeding and we have the annual review proceedings and then we have the TERP. This TERP is really to take care of the cost of power issues. Unfortunately we still have this problem of international oil prices going up so its something that places a burden on the consumer but its something that is unavoidable from our perspective."
The PUC announced today that the Chamber of Commerce has also made a submission to review the final decision of the TERP. Anyone else who wants a review has until January 31st to submit the request.
