Belize Electricity Limited faces $30 million debt to Mexico's CFE

Belize Electricity Limited (BEL) is facing a significant debt to Mexico’s state-owned energy supplier, Comisión Federal de Electricidad (CFE). Executive Chairman Lynn Young reported that while the debt stood at approximately $55 million in January, it has since been reduced to roughly $30 million, with about $20 million currently overdue.

The financial strain is driven by the fact that the cost of power often exceeds the electricity rates collected by BEL. Young noted that the company collects about $6 million in weekly revenue, but diesel costs alone account for over $3 million per week. To manage these obligations, BEL must prioritize payments to CFE, Hydro Belize, diesel suppliers, employees, and contractors.

To mitigate the deficit, the government of Belize has been providing financial assistance to help BEL meet its bills. Additionally, the company is looking toward the COPA adjustment to help lower costs, though Young indicated that current price fluctuations—where peak hour rates can jump significantly—continue to create monthly shortfalls.