BELMOPAN, Belize (CMC):

The Public Utilities Commission (PUC) has turned down a request for an increase in electricity rates from the Belize Electricity Limited.

PUC chairman Alberto Young said the decision was reached because the commission was of the view that the country's lone electricity company can be financially viable for the rest of 2008.

"We looked at their cash flow projections and we emulated it and we said if we were in their position and at this time of high oil prices, what would we do to offset some of these issues ... " he said. He added that the PUC would have to look at the cost of power rate stabilisation account to see how the rising cost of oil was affecting it and what could be done to minimise the effect of that on rates.