The subsidy on electricity rates received by the Federal Electricity Commission (CFE) from the Federal Government continues to increase.
During the first half of the year, the state-owned company received 43.8 billion pesos for electricity tariff subsidies, an increase of 68.4 percent with respect to the same lost of 2019, the first year of President Andrés Manuel López Obrador's government.
This is the fourth consecutive year that the government support received by CFE for electricity rates increases, according to the analysis of results to the second quarter of 2022 "CFE in the spotlight", conducted by the Mexican Institute for Competitiveness (Imco).
In 2018, the last year of the previous Administration, the CFE received a subsidy for electricity tariffs of 23,600 million pesos.
On another note, in the first six months of the year, the state-owned company's labor liabilities amounted to 367 billion pesos, which represents 22.7 percent of its total liabilities, amounting to 1.62 trillion pesos.
This figure is 24.9 percent lower than the CFE's labor liabilities for the same period in 2021.
Regarding obligations with suppliers and contractors, the electric company has a balance as of June 30 of 77.4 billion pesos, an annual increase of 65.8 percent.
"For the fifth consecutive year (2018-2022), the CFE recorded a net loss in the first half of the year. Between January 1 and June 30, it had a net return of (-)47.6 million pesos.... However, it is considerably lower than that observed in the same period of 2021.
"This decrease in CFE's losses is mainly attributed to the growth of its total revenues -mainly from electricity sales- and to the reduction of its net financial expenses and income taxes in the first six months of the year compared to the values observed in the same period of 2021," said Imco.
However, the losses maintained by the state-owned power company are attributed to the increase in fuel prices.
"The war between Russia and Ukraine has caused, as one of its main consequences, the rise in fuel prices.
"The fact that Russia is one of the largest producers of crude oil, gas and coal in the world has had a significant impact on the increase in the price of diesel, fuel oil, coal and natural gas, a situation that affects the various industries, especially the electricity industry", stated the CFE itself in its latest financial report delivered to the Mexican Stock Exchange (BMV).
The Government has been increasing its transfer of resources to the CFE to subsidize electricity rates.
Subsidies granted in the first semester of each year
(Billions of pesos)
Source: Imco, with information from CFE / Illustration: Freepik