Home » ECONOMICS » Rises in electrical rates lower competitiveness in Baja California and the northern border

Rises in electrical rates lower competitiveness in Baja California and the northern border

By: Dr. Alejandro Diaz-Bautista, Economist (PhD).

The rise in energy inputs affects the maquila and the industry.

“Some effects of the rise in energy inputs are the closure of companies, loss of jobs, low competitiveness and raised prices of goods and services,” said Dr. Alejandro Díaz Bautista, economist, national researcher at Conacyt and professor researcher of El Colegio de la Frontera Norte (El Colef).

The Federal Government agreed with the business and governmental sectors of Baja California, to install a permanent technical table to review the charging scheme of the electricity tariff that tripled in some cases.

The collection scheme of the Energy Regulatory Commission in the basic supply of medium and high voltage of the commercial and industrial sector will be reviewed to determine that the billing formula does not affect the competitiveness and development of the business sector in the entity.

In addition, a technical panel was permanently integrated with officials from the Secretary of Energy (Sener), Federal Electricity Commission (CFE), Energy Regulatory Commission (CRE), the Ministry of Economic Development and the State Energy Commission of the Government of the State of Baja California and the Canacintras and Index of the State.

It is worth mentioning that tariffs are determined by different factors such as the price of fuels (diesel and fuel oil), which are used significantly in power generation plants.

The Energy Regulatory Commission (CRE) approved the methodology for calculating and adjusting the Basic Supply Final Rates, which apply to most households and businesses, but also to companies that have not migrated to the new electricity market scheme.

The objective is to determine the value of the final tariffs that will apply to all individuals or corporations that are not large consumers, or qualified users, which represents a fundamental step in the transformation of the country’s electricity sector.

The CRE explained that the new methodology for the tariff, which will be used from December 2017 and until the end of 2018, is based on two general principles: the recovery of all the efficient costs of the Federal Electricity Commission (CFE), and the reflection of temporary variations in the cost of electric service, which will depend on the time of year, in order to obtain an efficient market and consumption.

The Final Rates of the Basic Supply are integrated by the charges associated with the Regulated Transmission, Distribution, Operation Rates of the National Center for Energy Control (Cenace), Operation of the Supplier of Basic Services and Related Services not included in the Wholesale Electricity Market (MEM), in addition to the cost of the energy, power and Clean Energy Certificates (CEL) necessary to meet the demand of users for Basic Supply.

The CRE highlighted that the Secretary of Energy and Finance participates in the creation of the calculation, as well as CFE Supplier of Basic Services.

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