BWS seeks tariff hike to fund BZ$130 million, 5-year capital investment
An average tariff increase of 20% is proposed for April 2026
BELIZE CITY, Mon. Oct. 6, 2025
Belize Water Services (BWS) is seeking an adjustment in tariffs that, if approved, would result in an average rate increase of 20% beginning April 2026. On October 1, the company submitted its 5-year business plan to the Public Utilities Commission (PUC), initiating the process for a Full Tariff Review Proceeding (FTRP) for the period April 1, 2026 to March 31, 2031.
BWS points to several factors that have led to increased operational expenses and funding needs in the last five years. It cites fluctuating water demand, rising costs, post-COVID economic shifts and ongoing infrastructure investments, all compounded by global economic pressures. Specifically, it reports a 12% increase in the average cost per thousand gallons of water produced using surface water treatment plants and well water systems.
During the upcoming five-year period, BWS is proposing to invest BZ$130 million for capital improvements, but it requires financing. The total proposed capital expenditure for the five-year period is actually $558 million, which the company proposes be reduced to $461.6 million. BWS expects that the government and developers would contribute $335 million of that total.
Among the projects BWS intends to undertake are water expansion and supply projects, an upgrade of its sewer system, meter replacement, and the introduction of capital renewal and replacement.
Apart from other funding sources such as its own reserves, credit and the previously cited assistance from the Government, BWS proposes a tariff increase to meet its funding requirement. In the summary of its 122-page business plan, the company describes itself as “an efficient company, fast becoming a model for water utilities in the region, in terms of operations.” At the same time, BWS says it “is extremely cash short due to the fact that its revenues have been inadequate to provide sufficient financings to meet all its obligations plus provide for required expansion.”
The increase will not be an across-the board flat rate. Instead, BWS is proposing what it describes as a new tariff basket that will see customers “charged fairly, based on their consumption levels, with incentives for responsible water use, and penalties for excessive consumption.” It would feature a different customer classification that separates residential and non-residential customers, and introduces a social customer block for low-consumption households. The definition provided for the latter is “a small residential dwelling, including rental homes and apartments, which uses water of an average 600 gallons or less monthly, solely for domestic use.” To protect lower-income residential customers from bearing the full weight of the proposed tariff increases, BWS says the new tariff structure would aim to “recover a more significant portion of the actual cost from non-residential customers benefitting from the services. Charges to residential customers are recommended to remain the same.” BWS says there would be a re-classification from “residential” to “social” for customers with a “single residential water account whose previous average 6-month consumption does not exceed 600 Gallon[s] per month.” This reclassification would be done bi-annually.
Currently, BWS charges customers based on consumption blocks, and a minimum bill for customers who consume up to 1,000 gallons per month. Below are BWS’ proposed consumption charges for the social and residential categories, and the current water tariffs for water only on the mainland.
The following table shows the proposed and existing tariffs for water and sewer services at the minimum block for social, residential and non-residential customers.
You can find the full breakdown of the proposed tariffs for Belize City and Belmopan (water and sewer), San Pedro and Caye Caulker and the non-residential category breakdown at the following link to the business plan: https://bws.bz/media/BWS_Business_Plan_2026_2031.pdf
BWS provides service in all the municipalities and 44 villages, and had 67,850 water connections as at March 31, 2025, and 11,690 sewerage connections in three locations – Belize City, Belmopan and San Pedro. In total, the company serves an estimated 305,325 citizens.
The company’s revenue from water charges to consumers in fiscal year 2024 ending March 31 was $53.6 million, while in 2025 it was $56.6 million. BWS also reported that “With the increase in consumption, total sales have grown by 20% over the past five years, primarily driven by a substantial 33% rise in non-residential sales” going from $17 million to $23 million.
In the plan now before the PUC, BWS explains that the company is cash-strapped due greatly to the inflationary cost of services and supplies. As a result, the company states that reduced available cash has made it unable to “fund adequate maintenance of existing assets, unable to invest in customer-requested service expansions, and unable to provide the regulated rate of return to shareholders.” It also emphasizes the urgent need to conduct management and repairs of key infrastructure that is degrading.
BWS was granted a tariff increase of 12.2% in 2010, but in 2012 it saw a reduction of 7.2%. In 2014, it received a 6.9% increase that became effective April 2015. A request for adjustments for the period August 1, 2022 to March 31, 2025, due to constraints as a result of the COVID-19 pandemic, was denied.
Apart from the tariff adjustment, BWS is also requesting regulatory changes, including being allowed to impose heavy penalties on perpetrators of water theft/illegal connections; allowing the company to charge fees for wastewater connections that reflect the true cost due to paved and concreted streets; and introducing late fees and finance charges in place of disconnections. This means that customers who pay late would incur a small fee rather than lose service, which would save BWS from having to send out disconnection crews. Additionally, to discourage bad debt, BWS is proposing an increase in the security deposit from $50 to $75.
The PUC will host a public hearing on the FTRP on Friday, October 17 at the Biltmore Plaza Hotel in Belize City, starting at 6:00 p.m. Written comments will be accepted until October 30 via e-mail at [email protected]. An initial decision is expected by mid-November.
