CFE industrial clients face massive price jump
Claudia De La Rosa
08-Dec-2017
The publication of the first basic supply tariff for
industrial clients of Mexico’s state power utility CFE on 7
December finally offers market participants a level of
transparency that they have been seeking for months.
Initial ICIS calculations show that large-consuming
industrial users in high-consumption regions such as Mexico
City could pay 30-40% more for electricity in December when
compared with the previous month. These calculations
confirm estimates expressed to ICIS earlier this year by
market participants.
The new tariff definitions, which apply to clients of CFE’s
regulated market supply arm CFE Suministro Basicos, are
outlined in detail on the CFE website, and are broken down
to the level of municipality.
The new tariffs for the first time give a true estimate of
the cost of energy which CFE can offer clients without
government subsidies which remain in place to domestic
power sector.
The price rises also increase the potential for industrial
users to move away from the regulated market, towards
buying power through bilateral over-the-counter
transactions on the deregulated market.
Consumers have been reluctant to move away from CFE until
now because they did not have the tariff prices to compare
with the service costs of the CFE’s growing number of
competitors, known on the deregulated market as qualified
suppliers.
Electricity market participants have expressed frustration
with the lack of information available in the Mexican power
market, and the publication of industrial tariffs inches
the market closer to a level of transparency that will
incentivise additional liquidity. claudia.espinosa@icis.com
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