Electricity rates rise in Barbados and Belize amid grid and supply challenges

Electricity consumers in Barbados and Belize are facing rising costs due to grid infrastructure needs and supply shortages.

In Barbados, the Fair Trading Commission has pre-approved the Barbados Light & Power Company (BLPC) to invest in three synchronous condensers (SCOs) to improve grid stability. The costs for these multimillion-dollar upgrades are expected to be recovered through base electricity rates during a future rate review. BLPC has the option to invest in a fourth SCO at its own risk, but must demonstrate its necessity to recover those costs later.

In Belize, a new Cost of Power Adjustment has been approved by the Public Utilities Commission to address a shortfall faced by Belize Electricity Limited (BEL). BEL reported that it has been purchasing power from Mexico’s CFE at rates significantly higher than what it charges customers, leading to financial strain. Prime Minister John Briceño noted that BEL has been selling energy at a loss during peak hours, necessitating the price adjustment to manage the energy shortage.