RFPEG Belize 2013 Public Utilities Commission

Objectives of RFPEG Belize 2013 PUC Act: Section 22 (1)It shall be the duty of the Commission to ensure that the services rendered by a public utility undertaking operated by a public utility provider (hereinafter referred to as “utility services”) are satisfactory and that the charges imposed in respect of those services are reasonable, and for this purpose, notwithstanding anything to the contrary in any law, the Commission shall have the power –

a)to enquire into the nature and extent of utility services and to determine and prescribe in accordance with the provisions of this Act, the Electricity Act, the Telecommunications Act, the Water and Sewerage Act, and other subsidiary legislation made under these Acts, the standards which must be maintained in relation to such services b)to determine and prescribe in accordance with the provisions of this Act, the Electricity Act, the Telecommunications Act, the Water and Sewerage Act, and other subsidiary legislation made under these Acts, the rates which may be charged in respect of utility services.

(2)The Commission shall exercise the functions assigned or transferred to it under this Act and other laws in a manner which it considers is best calculated to – a)secure that all reasonable demands for utility services are satisfied; b)secure that licence holders are able to finance the carrying on of the activities which they are authorized by their licences to carry on; c)protect the interest of consumers in respect of (i)the tariffs charged and the other terms of supply; (ii)the continuity of supply; and (iii)the quality of the utility services supplied;

d)promote efficiency and economy on the part of persons authorized by licences to supply utility services to consumers; e)promote research into and the development and use of new techniques by or on behalf of persons authorized by a licence to supply utility services; f)protect the public from dangers arising from the supply of utility services; and g)secure the establishment and maintenance of machinery for promoting the health and safety of persons employed in the supplying of utility services, and the Commission has a duty to take into account, in exercising those functions, the effect on the physical environment of activities connected with the supply of utility services.

Section 2 “public utility provider” means any person or company (including the lessee, trustee, receiver or liquidator of such person or company) who owns or operates equipment or facilities for:- a)the production, generation, storage, transmission, sale, delivery, furnishing or supplying, directly or indirectly to or for the public, of electricity…. Electricity Act: Section 6 (2) (c) c)promote competition in the generation and supply of electricity

Statement of Objectives The PUC’s Objectives of RFPEG Belize 2013 are to satisfy the duties and responsibilities conferred upon it by the PUC Act and the Electricity Act, and in particular to secure that all reasonable demands for electricity services in Belize are satisfied (over the relevant period) with reliable and continuous supply at affordable prices while promoting competition in such supply. As an implementer of Government Policy, the PUC is also interested in promoting the use of clean, renewable energy technology within the mix of supply options in Belize, in particular those utilizing solar, wind and other naturally occurring energy resources. Additionally, the PUC is the entity authorized to grant licenses for the provision of utility services in Belize and therefore naturally has to play a significant role in the securing of electricity supply.

As the only licensed transmission, distribution and supply entity in Belize, BEL has an obligation to satisfy all reasonable demands for electricity services and to practice prudent economy. BEL therefore naturally has similar objectives in terms of securing with reliable and continuous supply at affordable prices while facilitating competition in such supply.

The Government of Belize, represented by the MESTPU, is charged with managing the public affairs of the citizens and has a natural obligation to set and oversee the implementation of prudent energy policy. In pursuit of its policy to promote private investment and participation in the utility sectors, the Government conferred relevant powers on the PUC to regulate the utility sectors and to implement the policies established by the Government for the said sectors. The MESTPU therefore has similar objectives to both the PUC and BEL, but also to ensure implementation of its energy policy and to assist in administrative matters were appropriate.

Evaluation/Negotiations Ultimately, the PUC, BEL and MESTPU are interested in contracting for the projects that best matches our current mix of supply sources in terms improving reliability, continuity and affordability. Therefore, projects that garner the highest points in evaluation may not necessarily be awarded a PPA. In case of a virtual tie after dispatch simulation and determination of the fit of project proposals, those with more points will of course be prioritized for contract negotiations.

Licensing The PUC is the authorized entity to grant relevant licenses in Belize. It is anticipated that successful bidders who sign on to a subsequent PPA will be assured of being granted an appropriate license. However, all relevant Laws of Belize are to be satisfied before any such license is granted so that one cannot be guaranteed at this time.

Financial Matters In addition to a wide range of powers, responsibilities and duties placed on licensees, there are certain comforts and assurances provided under the PUC Act and the Electricity Act in regards to licensees, including financial. The PUC has always and intends to continue to apply the principles set forth in the Acts and other relevant subsidiary legislation with regards to the financial viability of licensees.

Future Considerations – potential for projects beyond 60 MW firm RFPEG Belize 2013 is concerned with satisfying the demands for electricity services in Belize. The PUC, BEL and MESTPU are satisfied that the requirements laid out in the RFP Document will accomplish this. However, the parties may wish to engage bidders not successful in this bidding process if conditions prove right for an active energy trading market between Belize and neighbouring countries. Any such engagement would be done independent of this RFP process. Imminent opportunities exist for participation in small-scale distributed RE generation. To this end, the PUC, BEL and MESTPU are collaborating in establishing regulations to introduce such a market in a managed manner. The appropriate regime is expected to be established by mid to late 2014.