Saturday, June 10

Energy prices are more volatile in Mexico than in the US due to disorder in the electricity market

Mexico could not register price stability on the electric power of the industrial and domestic sector due, to a large extent, to the disorder that exists in the electrical market, denounced Humberto Morales Moreno, a professor at Institute of Government Sciences and Strategic Development of the Meritorious Autonomous University of Puebla (BUAP).

During his participation in the forum “Is it still the CFE necessary for the coverage of electric power in our country?”, the specialist pointed out that since the 2014 reform came into force, the electricity prices for industrial use and domestic use have not been able to fall, but on the contrary, they have continued to rise.

“The question we must ask ourselves is: how did the 2014 reform benefit Mexicans if the prices of sale of electricity Didn’t they decrease like the US model?

He detailed that the energy pricesa for industrial use in Mexico compared to U.S they are high and volatile, while in the United States they have remained stable and have remained for the last ten years at .07 USD/KWH.

He pointed out that Mexico has not achieved those stable prices Since the private initiative has had practically 50 percent of the country’s electricity generation and has received a huge amount of contracts without control.

“Today we know that these companies simulated partners who are actually clients to whom they sell electricity financed by the Federal Electricity Commission (CFE) because they are charged from the transmission lines, with the electrical reform proposed by the president Lopez Obrador it is not about excluding private individuals, but about putting order in the electricity market“, He said.

In response, Francisco Barnés de Castro, managing partner of CIFRA2 Consultores, added that it is essential to maintain a regulated market where private parties participate, but investors must be provided with certainty, since the current reform initiative is very restrictive with them.

“There are investments of more than 60 billion dollars to which a radical change in their business model is imposed, which would violate the international agreements signed by our country”, he stressed.

Oscar Moreno Silva, a lawyer specializing in energy, also participated in the open parliament, pointing out that nobody wants the CFE to disappear, but care must be taken not to carry out a de facto expropriation of individuals. “Clearer rules, legal certainty and respect for the rule of law are needed,” he said.

Meanwhile, Mónica Rodríguez Díaz, senior consultant at Integralia Consultores, stated that the country should focus on providing a universal access a Energy affordable, safe, sustainable and modern to combat climate changeTherefore, in order to achieve this objective, this reform is not necessary.