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    Possible increase in electricity prices studied, but below inflation rate


    June 10, 2022 - CE Noticias Financieras

     

      The Mexican government is analyzing a possible increase in the rates charged by the Federal Electricity Commission (CFE) to its clients, although the increase will not exceed inflation, assured President Andrés Manuel López Obrador.

      In a press conference at the National Palace, he informed that the increase has been analyzed for weeks by his cabinet and that the CFE will receive economic compensation from Petróleos Mexicanos (Pemex).

      In the discussions on the electricity increase, the heads of CFE, Manuel Bartlett; of Pemex, Octavio Romero; the Secretary of Energy, Rocio Nahle; and the Secretary of Finance, Rogelio Ramirez, have participated, explained Lopez Obrador.

      "My commitment was that prices were not going to increase above inflation, but we are living a special situation, that if we increase according to inflation, it is going to be felt, so we are analyzing it.

      We are looking for a way that even when we are below inflation, precisely because of inflation, so as not to encourage it and so that people are not affected, we are looking for a way to help the CFE", explained López Obrador in a press conference.

      He said that the mechanism that is being explored is that the extraordinary profits that Pemex has due to the increase in the price of oil can compensate the CFE.

      He acknowledged that the increase in the cost of generating energy is due to the fact that the international price of natural gas increased due to Russia's war against Ukraine.

      "That surplus allows us to be able to subsidize, to remove the IEPS. As it is the government of the Republic, it is not the government of Pemex or CFE or the Treasury, but the government of all Mexicans, we have to help all Mexicans, if Pemex is doing well and has a surplus and can help, it helps, we help each other," said the President.

      He insisted that the mechanism to support the CFE has not yet been defined, as it could be a described method or through the injection of resources from tax collection.

      In addition, he said, the CFE will benefit from the entry into force of the new law on electricity matters, since it will allow the electricity generated by the state-owned company to have priority in the use of the power grid and to have greater profitability.

      The head of the Executive acknowledged that if electricity is increased, inflation could worsen with the cascading increase in prices of basic consumer products.

      *jci

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