Ratemaking principles

(1) The methodology developed and used by the Commission for determining electricity tariffs, rates, charges, fees and mean electricity rates shall include provisions for– (a) the timely recovery of the full cost of power; (b) a fee for the timely recovery of the amounts in the Rate Stabilisation Accounts; 28 Electricity (c) a fee for capacity support to compensate the licensee for capacity it owns, including, without limitation, a reasonable return on investment when operating in a manner compatible with international standards of an efficiently operated power system of similar characteristics to that of Belize; (d) a fee for power delivery service to compensate the licensee for the transport of electricity from its source to customers and for customer services associated with the supply of electricity including, without limitation, a reasonable return on investment when operating in a manner compatible with international standards of an efficiently operated system of similar characteristics to that of Belize; and (e) a financial incentive for improvement in service reliability. (2) Using the methodology developed by the Commission and the regulated values determined by the Commission in a FTRP for the regulated parameters set out in the Schedules, the Commission shall fix mean electricity rates, tariffs, rates, fees and charges for the FTP. (3) The mean electricity rate, tariffs, rates, fees and charges fixed in accordance with bye-law 4(2) herein, and the regulated values determined thereby shall be adjusted between each FTRP in an ARP as provided for in Part IV of these Bye-laws. (4) Tariffs shall be allocated to different customer classes to produce rates for such particular customer classes that are based on the cost of serving such classes, except where the Commission determines that a different allocation between customer classes is required to provide affordable rates to the needy. Electricity 29 (5) Detailed rates shall be designed so that the licensee will recover on average the mean electricity rate resulting from application of the methodology and the regulated values determined by the Commission for the regulated parameters set out in the Schedules. (6) Subject to these Bye-laws, a licensee shall not charge a customer less than the applicable rates or charges determined in accordance with these Bye-laws, except where the prior approval of the Commission has been given; and the licensee shall not charge a customer rates that are less than the cost of