The overturning of the electricity counter-reform gives a respite to the economy: expert

The overturning of the electricity counter-reform gives a respite to the economy: expert

Monterey /

The setback received from the initiative of electric meter came to give the Mexican economy a break, its failure prevented the consummation of an economic disaster for Mexico, he said Federico Mucino Garcia, CEO of Epsconcompany specializing in electricity contracts.

“This undoubtedly means a great deal of breath for the Mexican economy, since the counter-reform has posed a destructive and archaic scenario in which competition in the electricity sector has been almost completely eliminated,” said the expert.

He stressed that this is why the failure of the counter-reform is a triumph for competition and competitiveness of the sector in Mexico.

“Although the prospects are not rosy, companies can have the peace of mind of entering into contracts with qualified suppliers, knowing that in the near future the Wholesale electricity market (MEM) it will continue to work.

“In particular, medium and large energy-consuming companies can breathe a little easier knowing that the options they have explored to purchase electricity from a qualified supplier will continue to be possible,” he added.

However, he believes that the landscape still presents some significant challenges that companies should keep in mind when looking for options for energy supply for their plants, as well as to evaluate the path to follow with the contracts they already have in place.

The biggest threat to Mexico’s electricity industry was undoubtedly the possibility of the electricity counter-reform being passed, Mucíño García said.

You think, the counter-reform meant the destruction of the MEM and with it the possibility for a company to purchase energy from a supplier of its choice and at the price agreed between them.

He explained that the only option that would remain in place to purchase energy was CFE Basic Supply and at government-dictated rates.

What matters today, added Mucíño García, is this the legality of the MEM operation is no longer threatened in the short termbut that doesn’t mean that private generation companies will suddenly have more energy sources available to consumers.

“This is a very important point to consider for companies that intend to reactivate their energy purchasing processes, especially those that are specifically looking for renewable energy.

“All the uncertainty that has surrounded the electricity industry in these last six years has caused a halt or at least a pause in investments in the sector. For this reason, the generation supply available from qualified suppliers has remained unchanged in recent years, which means that it may not be enough to meet the needs of all those interested in getting a better price than that of CFE Básico and more difficult too. if this happens exclusively with increasingly scarce renewable energy sources “.

He pointed this out its impacts have gone far beyond the energy sector directly influencing the competitiveness of the sector and the attraction of investments. It is time for medium and large companies to start reactivating their electricity purchasing processes and thus obtain significant savings.