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 Moderated by: bartmanaz
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2019 CFE elect rates - big ouch  Rate Topic 
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 Posted: Fri Dec 28th, 2018 06:53 pm
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nice guy
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Yesterday, CFE published their new tariff structure for 2019. It has been totally changed by eliminating most of the Mexican Federal gov't subsidy and replacing that money by increasing the cost to CFE customers - it looks like residential customers are going to be paying about 2 1/2 times their current bills, except people in the DAC rates. 


The existing structure based charges in multi-tier usage bands, summer 6 months were 40% discounted, and rates varied by location. We are in the 1E tariff location.  


The new structure has only 2 bands - DB1 Basic is 150 KWH per month, and DB2 is everything more than 150 a month. We are currently on a 2 month billing cycle so DB1 would be 300 per bill. Plus they are charging by KWH for Distribution, Transmission, etc DB1 for Norte is 1.3021 pesos a KWH pesos and DB2 is 1.1532.  


So my most recent bill (Sept-Nov) of 684 KWH had 600 KWH at 0.583 KWH and 82 at 0.726 - elect only was 410 pesos, before IVA, etc. total was 554 pesos Using DB1 & DB2 rates - the 684 KWH elect only part goes up from 410 pesos to 889 - then add on the charges for Dist, trans, taxes etc. - looks like the total would be almost 1200 pesos, up from 554. Not quite 2 1/2 times as much. Keep in mind, I'm not very good at reading bureaucratic Spanish.

Attached Image (viewed 633 times):

CFE 2019.jpg

Last edited on Fri Dec 28th, 2018 06:56 pm by nice guy

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 Posted: Fri Dec 28th, 2018 07:08 pm
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Angel
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Aren't we in the "Noroeste" -Northwest-?

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 Posted: Fri Dec 28th, 2018 07:54 pm
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nice guy
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Maybe? If we are that would be better.

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 Posted: Fri Dec 28th, 2018 08:02 pm
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Angel
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I looked for the chart, could not find it... where was it published?

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 Posted: Fri Dec 28th, 2018 08:32 pm
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nice guy
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I suppose it will be published in the official Fed gov't "paper". It's only dated yesterday. A friend sent it to me. Google CFE DB1 DB2 and you'll see some articles published earlier this year.

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 Posted: Sat Dec 29th, 2018 12:41 am
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Bullshipper
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All of Sonora is division Noroeste.

But according to what I understand, the DB1 and DB2 charges is old news that came into effect in 2017 and will only apply until the end of Jan 2019. After that they go to a new formula, and those charges appear to have risen around 13% nationally, which is about what the dollar did recently against the peso.

As Mexico imports most of the fuel and natural gas, this will be the trend for power generation, as it has always been, but 3.5 cents a kw is very very cheap for the consumption rate, even if it is only one part of our bill.

Last edited on Sat Dec 29th, 2018 12:42 am by Bullshipper

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 Posted: Sat Dec 29th, 2018 01:03 am
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Hook
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There are lots of general articles on the internet about the big change. I think I would accept that the chart is correct, even though I cant find it in the official government register or the most current on the CFE site.

Which column we fall in, I dont know, but I would think it would be Noroeste because Baja California has its own category. So, that would leave us as the Northwest.

I am finding articles as far back as the beginning of the year that talk about the big change. They say it will take place on Jan 1, 2019.

One of the most significant changes is that IF you go over the basic 150kw per month, all of your consumption falls under DB2. Including the first 150kw. The overall rate goes down about 20-25%, though.

It does, indeed, look like one's electric bill could go up over twice as much.

I cant imagine how much it might cost to stay here in the summer. Some houses would easily rack up electric bills over 500.00US, I would think. Probably more. That will have to be tacked onto the rental rates, in some fashion.

Last edited on Sat Dec 29th, 2018 01:04 am by Hook

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 Posted: Sat Dec 29th, 2018 01:47 am
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Hook
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Remember when the Mexican government announced that they would be ending "subsidies" on the price of gasoline and diesel and would allow the price to float to market conditions, based on the true price of oil? It was about 2-3 years ago.


Oh yeah, and the inclusion of foreign oil companies was going to make the fuel market more "competitive".


Well, the price of gasoline and diesel hasnt changed a bit in several months, (at any of the stations, Pemex or Arco or whichever) yet the price of oil has gone from 70.00US/barrel to just over 40.00US per barrel in the last few months.


It was a complete lie. The price of gasoline is clearly not following any type of true market conditions. It's been artificially set high to benefit all the producers. Now we see why foreign companies were so eager to enter Mexico. Pemex keeps the price artificially high and the foreign companies see no reason to undercut them significantly.


So much for the free market in Mexico......


It's fairly easy to find gas in Tucson at less than 2.00/gallon. In the Guaymas area, regular gas is ~19.9 pesos/liter. About the best exchange you could get right now is about 19.5/dollar. The dollar has devalued against the peso (and most other currencies) as the stock market has slid. 


So, 3.785 liters X 19.9 pesos divided by 19.5 equals.........about 3.86 US per gallon.


CFE is another government monopoly that is on the road to "free market" pricing. 


Pity the poor Mexican.

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 Posted: Sat Dec 29th, 2018 07:31 pm
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Bullshipper
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Need a specific link to discuss, lots of conflicting articles.

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 Posted: Tue Jan 1st, 2019 03:57 pm
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Hook
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Jeff, all I have found are articles with very little details, except that the 2nd tier starts at 150kw/month and that it supposedly takes effect........today! Happy New Year!

But they are just articles written by staff writers. I can find nothing as official as what nice guy posted.

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 Posted: Tue Jan 1st, 2019 09:51 pm
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Bullshipper
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I finally found the real deal for 2019, all year.

https://app.cfe.mx/Aplicaciones/CCFE/Tarifas/TarifasCRENegocio/Acuerdos/AcuerdosNegocio.aspx
Now if you click on the PDF link, it starts with the offical nofication fron Hacienda, and our rates are farther down, on page 10 of the same pdf.

Adding up the DB1 per kw rate I get 2.0747 pesos per kw, and the DB2 is about the same. Then there is a fixed monthly meter charge of $61 pesos, so even if there is no subsidy now your bill would look like this for 600 kw per every 2 months.

Monthly $61pesos
Energy 600x 2.0747= 1244.82
Subtotal $1306
Iva 209
Total w IVA = $1515

1515/20 = 75.75 USD for 2 months or $37.88 USD per month wirh airconditioning, and less in the cooler months at Nice Guys house.

So its about $3 per month and 12 cents per kilowatt with Iva according to my translation and calculations.

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 Posted: Tue Jan 1st, 2019 10:03 pm
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Bullshipper
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The DB2 rate is less than the DB1, so the above is a worst case scenario, as its 2cents less per kw with Iva.

This is higher than the $20 per month that Nice guy calculated with, but the new rate does not include any subsidy, and I am adding up all the charges on the line which are around 6, and not just the db1 and 2.

This just became official 12/28/2018, and has not hit the local papers. So I imagine there will be some protest, just like on the gasolinazo last year, so Andres will have a lot of backlash to deal with and may bend.

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 Posted: Tue Jan 1st, 2019 11:54 pm
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My friend gave me a diff doc, one where the 5 members of the Mexican Energy Regulation Commission signed off on this structure, and then the Commission sent this doc to the CFE to implement it. 

That motivated me to contract for a 4KW 14 panel solar setup, and join in the recently revamped net-metering elect plan that CFE recently agreed to. Used to be that you "banked" surplus solar produced KWH and at the end of the year, unused "bank" balances were wiped out. You got nothing. They recently changed this by adding an option to a "write a check to you" for the banked KWH. Not that I'm planning to make a business of it, because I'm going to buy an all elect car and pour those KWH into it's "gas tank" battery.

Last edited on Tue Jan 1st, 2019 11:56 pm by nice guy

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 Posted: Wed Jan 2nd, 2019 02:31 am
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Bullshipper
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But its wierd that the higher use rate is actually 20% cheaper than the lpwer demand rate.

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 Posted: Wed Jan 2nd, 2019 10:27 pm
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dolphin007
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When I compare my summer CFE bill in SC to what I pay in the Summer months in the State of Arizona,
My CFE bill is peanuts!  
Then again, This is why many moved to SC. The dollar stretches much further.  Where else can you live this close to the ocean and within 5 hours of the USA?



My CFE bill for 2 months in the Summer here in SC is around 3,000 pesos give or take a couple hundred. NEVER below. In the winter months, it's far less than half.  Normally doesn't get that cold to use the heater 24/7 like one must do in the mid-summer months here in SC.
The size of my home is approx 1500sf, No Pool.



My Summer electric Bill in Arizona for same size home and keeping my thermostat at 78 degrees all the time, runs me on average 250.00 dollars give or take a few dollars. The months of Aug-Sept is 300.00 +US dollars. W/Pool.


Then again, This is comparing apples to oranges.

Last edited on Wed Jan 2nd, 2019 10:40 pm by dolphin007

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 Posted: Wed Jan 2nd, 2019 11:08 pm
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nice guy
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Dolphin - Look at your SC bills in KWH and see how your 3000 pesos is going to look more AZ sized.

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 Posted: Thu Jan 3rd, 2019 08:45 pm
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dolphin007
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Yes nice guy, your probably right :O)

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 Posted: Fri Jan 4th, 2019 04:54 pm
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long time resident
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My Arizona electric bill (for a larger home) is less in the summer months , then my Mexican electric bill. (in the summer months) I am sure the insulation helps, but they are pretty close to the same, with no subsidies.

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 Posted: Sat Jan 5th, 2019 09:27 pm
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dolphin007
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long time resident, You stated your AZ electric bill in the summer with a BIGGER HOUSE is cheaper than your San Carlos 2 month house bill?

for 2 months?

Wow,. I'm truly impressed! I need to know your trick!
OKay, are you in your home in Arizona in the summer during July, Aug, Sept? ( tee-hee! :O) )

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