On January 9, the Public Utilities Commission had ordered a decrease in electricity rates that worked out to about a 12% reduction in the average light bill. Well, since then they had to delay implementation of that decision because BEL successfully showed that they hadn’t complied with the procedural requirement of inviting public comments. And now the revised decision is even more favorable to consumers, it lowers the average rate by about 15%!
“We had expected that by this time oil prices would have been around $50 a barrel and it hovers just around $40,” commented John Avery, Chairman of PUC. “So when we looked at it again we decided to make a further downward adjustment because the price of oil hasn’t been moving up as quickly as we expected it to back in January when we issued that first amendment.”
And according to Mr. Avery what this basically means is that compared to the rates that were approved on June 26, 2008, the rates have been reduced overall by approximately 15%. And it is across the board, across all customer classes; residential, even the social rate has been given a reduction in this case.
The approved 37.5 cents per kilowatt hour is a decrease of 15% from the 44 cents that was approved in the 2008 final decision. According to the PUC, that decision had also included a new rate setting methodology which came into effect on September 1, 2008. This new amendments according to the PUC will now allow BEL to realize the target rate of return of 12% during this tariff period as oppose to the 10% that was approved in the final decision. The rates are retroactive to January first, which means that the difference should be credited to your account. Read the full decision at www.puc.bz.
