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Rate setting in the electricity sub-sector is achieved through regular rate reviews by the PUC. BEL is obliged to go through a full tariff review proceeding every four years. By this process BEL forecasts its costs, its capital investment programme and its required rate of return; this is all reviewed by the PUC and electricity rates are set for the services to be delivered by BEL. Each year there is an annual review to measure the actual results against the performance that had been projected and adjustments are made if necessary. Over the years, the rate setting methodology has been changed four times. This has created serious differences between BEL, Government and the PUC. In the event, the rate setting proceedings have been subject of keenly contested litigation. In the most recent decision of the Supreme Court, ruled that “Good Regulatory Practice” as recognized and practiced worldwide does not apply to Belize under the rate setting methodology currently used by the PUC. This far-reaching decision is now on its way to the Court of Appeal. Courtenay Coye LLP has now been instructed by BEL to represent it in the Court of Appeal. In telecommunications, rates in the mobile sector are determined by competition between the two companies subject to approval by the PUC. In those sectors of the telecommunications industry where there is no competition, rates are set by the PUC. In late 2009 Telemedia interrupted the delivery of services to Speednet. This resulted in Speednet’s customers losing service and otherwise experiencing substandard service. Speednet was able to resume full services when the Supreme Court granted an injunction that obliged Telemedia to return services to the status quo ante. Speednet alleged that Telemedia’s actions
were in breach of its dominant position in the market. However, the Supreme Court has held that Telemedia was not acting in breach of its dominance as no proper market assessment had been done by the PUC to establish whether Telemedia is actually dominant in the market for mobile telecommunications services. The Supreme Court has called on the PUC to consider doing the required assessment. Another fallout from the Supreme Court decision is that all the agreements between Telemedia and Speednet need to be re-negotiated. This is to be achieved without any interruption in services. In the meantime, the PUC is in the process of designing and implementing new regulations for the telecommunications sector. There is a high level of instability in the regulatory environment in telecommunications and electricity. Because of the inability of the utilities and the PUC to reach agreements on fundamental matters, there continues to be appeals and court cases. It would appear that more litigation is to be expected going forward.
Justice Sosa is New President of Court of Appeal On January 3rd, 2011, Justice Manuel Sosa was sworn in as President of the Court of Appeal of Belize succeeding Elliott Mottley, whose resignation took effect at the end of December. Justice Sosa was sworn in by Governor General Colville Young and the event was witnessed by Attorney General, B.Q. Pitts at Belize House. Justice Sosa has been in the legal profession for 34 years. This has included time in private practice as well as various official capacities. The learned jurist was a Justice of the
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Supreme Court from 1993 to 1999, which included a brief stint as the Chief Justice of Belize in 1998, and has been on the Court of Appeal bench since 1999. The Corozal native, who is married and a father of three, is also a former Most Outstanding Law Student at the Norman Manley Law School in Jamaica; former President and Vice President of the Belize Bar Association and member of the Bar Committee and Association of General Legal Counsel, and was appointed Ordinary Commander of the Civil Division of the Order of the British Empire (CBE).