Executive Summary
Overview
Belize Water Service Limited (BWS) tariff and miscellaneous fees are reviewed and approved by the Public Utilities Commission (PUC) through a tariff review process. The PUC regulatory process includes a five-year review period referred to as a Full Tariff Period (FTP). The first FTP under the current PUC license was for the period ending March 31, 2010. This initial period is referred to as the “First FTP” period. The Second FTP includes the period between April 1, 2010 and March 31, 2015. The existing or Third FTP includes the period between April 1, 2015, and March 31, 2020. The business plan herein addresses the Fourth FTP which is projected to span from April 1, 2020, through March 31, 2025 (FFBP).
BWS operates on a fiscal year (FY) basis starting each year April 1 and ending March 31. As of the date of this report, BWS is operating within FY 2019/20. The business plan includes a financial model and projections based on planned future financial results. The financial analysis relies on recent Financial Statements and Independent Auditor’s reports, the FY 2019/20 budget, and other recent information to form the starting point, and then forecasts key financial and operational elements to develop the full five-year forecast from FY 2020/21 through FY 2024/25.
Proposed Tariff Structure
No tariff increase is proposed during the first two years of the FFBP, but an adjustment in the tariff is proposed. Important objectives identified in the tariff design include i) simplifying the consumption block for residential and non-residential customers; ii) maintaining the 1,000-gallon minimum for all customers; iii) evaluating a fixed minimum charge by meter size for non-residential customers; and iv) affordability.
