When the PUP sent out a press release yesterday announcing that it was having a, quote, "breaking news press conference" - it surely sent a shiver down the spine of the ruling UDP- not knowing which skeleton would come out of the closet. But, as it turns out that breaking news wasn't really so hot, no hands caught in the cookie jar, no dirty deeds done cheap - and if it was any kind of skeleton - it's one that the PUP killed and the UDP buried.
We say that because it deals with BECOL - the Fortis owned hydroelectric provider, which sells power to BEL. The Canadian company does so using Belize's rivers - for free - and then sells the power to BEL - which the utility company has to pay for in US dollars, and then Fortis happily remits its profits back to Canada.
This was an arrangement worked out by the PUP - where BECOL got the rivers free for 40 years, unregulated - and now when the Barrow Administration settled the BEL takeover - BECOL wanted what's known as some comfort, that it would be able to continue to conduct its lucrative business unbothered, without having to worry about regulation.
That comfort is contained in what is called a deed of confirmation and assurance which the PUP released at a press conference today, describing the ten page document as a secret agreement. Lisa Shoman explained why:..
Lisa Shoman, PUP Spokesperson
"The issue with this deed is did the cabinet know about it. Were they told? Was it disclosed to the national assembly? The answer to the second is definitive no, in terms of the proceedings of the national assembly. By clause 2.2 - the government of Belize hereby confirms and represents that BECOL will be allowed to carry on business in Belize without interference. Without interference and pursuant to the terms of existing agreements relating to the operation and management of the Mollejon, Chalillo, VACA hydroelectric facilities. Including those provisions, fixing the rates to be paid by BEL for electricity supplied by these facilities. By the terms of this clause BECOL is therefore not to be interfered with by anyone. By clause 2.2 therefore, government has locked in the rates of the existing power purchase agreements between BEL and BECOL regardless of what the PUC, any tribunal or court might determine. So that even if the PUC or a tribunal or a court might determine that rates should be adjusted, the government must take all necessary steps to ensure that BECOL suffers no loss by any such determination and will make good such loss. Consumers in Belize will now have to pay for the next 20 years for Mr. Barrow's pissing-contest with FORTIS. It is consumers that will ultimately be shafted twice. Both as consumers and as citizens of Belize. The signature on this deed dated 8th September, 2015 is that of none other than the Prime Minister Dean Oliver Barrow and it is witness by none other than Denys Barrow."
Jules Vasquez
"The PUC has never regulated BECOL, which is, I have my own feelings on it. But that is part of really an agreement that the PUP signed with them when they gave them the river free outrageously for 40 years. So we import energy from BECOL and they get our rivers for free. So then my question is, I am not sure that what does this established that wasn't there previously?"
Lisa Shoman
"Thank you for the question Jules and for the editorial as well. Jules, as you know this is no herring at all. What this is a deed that was never disclosed to Belizeans. If it was a mere matter of comfort, there should have been absolutely no reason why the Prime Minister did not provide this to Belizeans. BEL is regulated by the PUC, but what this now does, is to insulate any regulation by the PUC of BEL's rates. It insulates BECOL from any loss. Go and read it in black and white."
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