‘Waata’ Relief: Fortis Belize Assures Steady Hydro-Energy Supply

Fortis Belize, led by President and CEO Kay Menzies, has confirmed that its dams have sufficient water levels to meet the energy demands of Belize Electricity Limited (BEL), a crucial development as the country grapples with ongoing concerns about power supply.

As readers may recall, earlier this year, Belize faced significant energy shortages that had led BEL to implement “load shedding”, resulting in regular blackouts to manage energy demand.

Menzies emphasized that the Chalillo Dam, a key component of Fortis Belize’s hydro-electric operations, currently holds enough water to ensure a stable energy supply to the national grid managed by BEL.

“We're able to supply BEL quite well when they need it,” Menzies affirmed.

This assurance comes after a period of drought in early 2024, which raised concerns about the availability of hydro-electric power. In 2022, Fortis Belize, through its subsidiary BECOL, supplied over 30% of the energy sold to BEL, making it the second-largest contributor to the national grid after CFE in Mexico, which supplies approximately 47%.

The energy landscape in Belize is further supported by other domestic sources such as BELCOGEN, operated by ASR/BSI, and SS Energy from Santander.

Menzies noted that with the current water levels at Chalillo, Fortis Belize is well-positioned to handle any incoming weather systems during the hurricane season, further contributing to the stability of the energy supply. This development is crucial for Belize as it continues to navigate the challenges of energy management and demand.

However, the good news from Fortis should not overlook the systemic problems and energy constraints that BEL Chairman E. Andrew Marshalleck highlighted earlier this year. Marshalleck had explained that regulatory limitations prevent BEL from investing in alternative energy sources.

The Chairman addressed the misconception about BEL’s role in the electricity market. He clarified that the regulatory framework mandates BEL to operate as a Transmission and Distribution Company, which prohibits any form of engagement in electricity generation. This setup is intended to foster competition among independent power producers, theoretically lowering costs and improving supply. However, Marshalleck highlighted that "the market for electricity generation is not an open one which allows for any true competition in supply," indicating that the expected benefits of this system have not materialized.

“Competition is in fact state-managed,” explained Marshalleck. “The state decides who gets to compete, and it is in this decision-making process that the regime fails to deliver. Since 2013, the system for managed competition has not only failed to produce cheaper sources of power for Belizeans but it has failed to make such sources of power available any at all.”