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    5% decrease in electricity tariffs for high consumption in August

    August 4, 2022 - CE Noticias Financieras


      The Domestic Electricity Tariff for High Consumption (DAC) in the central region dropped 5.2 percent monthly in August, after reaching a historical maximum in July.

      However, despite this reduction, compared to the same month last year, it represented an increase of 27.9 percent.

      The DAC tariff is applied to households whose average consumption exceeds 250 kilowatt-hours (Kw/h) per month during a year and is composed of two charges: one for energy and another fixed charge.

      The main charge is the charge for energy consumed, which this month will be 7.036 pesos per Kw/h, 39 cents less compared to July and 1.54 pesos more compared to August 2021, according to data from the Federal Electricity Commission.

      The formula of the Ministry of Finance for the monthly adjustment of this charge specifies that in addition to producer inflation in certain sectors, the variation in fuel prices is also considered.

      Taking into account that monthly producer inflation was 0.6 percent, the variation in the fuel index would have decreased 18.2 percent, driven by a reduction in natural gas.

      According to data from the Energy Information Administration (EIA), in the reference period the price of Henry Hub natural gas fell 10.4 percent per month.

      As for the fixed charge, it will be 132.97 pesos in August, 0.6 percent more than in July and 10.0 percent higher than in the eighth month of 2021.

      The Ministry of Finance specifies that the change in the fixed charge corresponds 100 percent to the inflationary adjustment to the producer.

      Step backwards

      In August, the energy charge of the DAC tariff decreased with respect to July, but it was not enough to erase the progress made in recent years.


      (Pesos per Kw/h)

      A 2021 5.500

      M 2022 6.790

      A 7.036

      Source: CFE


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