Complaints on the rise against Mexico’s CFE

08/22/2016 BNamericas

Cuatro Cienegas - Circle of Blue

State power utility CFE is one of the leading Mexican companies when it comes to customer complaints.

Federal consumer protection agency Profeco says 4% of the complaints it fields are against the utility, mainly about its metering system and billing. Complaints against CFE rose to 29,002 last year, 11% higher than in 2014, which in turn saw a 38% rise from 2013.

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Mexico ruling party to pick energy official as new head – sources

07/08/16 Reuters

Copy of PRI logoMEXICO CITY, July 7 (Reuters) – Mexico’s ruling Institutional Revolutionary Party, or PRI, will pick a top government energy official to take over as party leader next week, two years ahead of the next presidential election, three PRI officials said on Thursday.

Enrique Ochoa, who heads the Federal Electricity Commission (CFE) and played a major role in crafting President Enrique Pena Nieto’s landmark energy reform, will be the next PRI chairman, said the officials, who spoke on condition of anonymity, because the matter must still be voted on.

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Mexico tries new way to kick-start energy investment

11/5/2015 Financial Times

energy - oil pumpsWith their balance sheets straining, Mexico’s state-owned oil and electricity companies must find new ways to make money from their assets, fast.

Pemex, the oil group, saw third-quarter net losses swell 180 per cent to nearly $10bn, while losses at CFE, the power company, ballooned 240 per cent to $1.9bn.So a newly announced vehicle designed to spur investment in energy assets such as pipelines and transmission lines could hardly have come at a better time.

Between them, Pemex and CFE expect to use the new instruments, called Fibra E, to monetise $1.8bn of assets early next year, their chief executives told the FT.

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Mexico to Award $4.9 Billion of Power Plants and Pipes

08/18/14 Bloomberg

Energy -electricity_transmission_linesComision Federal de Electricidad, Mexico’s state power company, will auction $4.9 billion in pipeline and electricity projects as the energy industry opens up to private investment for the first time since 1938.

CFE will offer contracts for four power plants, four pipelines and eight electricity transmission and distribution projects by next year, Chief Executive Officer Enrique Ochoa told reporters today in Mexico City. More than half of the investment would be for an 889-megawatt plant in northeastern Mexico and a 786-megawatt plant in western Mexico, contracts for which will be awarded in the first half of 2015.

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Mexico’s CFE to tender $2.8 bln in power plant, pipeline projects

07/21/14 Reuters

gas pipeline and gaugeMexico’s national power company CFE said on Monday it will offer $2.8 billion in natural gas and electricity infrastructure project contracts by the end of this year aimed at boosting economic growth.

The projects include two combined-cycle power plants, two natural gas pipelines as well as an electricity transmission project, all located near Mexico’s northern border with the United States.

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RPT-Fitch: Mexico’s energy reform positive for Pemex, challenges CFE

Energy -electricity_transmission_linesReuters, 2/4/14

Mexico’s energy reform is a long-term positive for the country and Petroleos Mexicano’s (Pemex) credit quality, while Comision Federal de Electricidad (CFE) faces margin pressures, according to a new Fitch Ratings report. ‘Fitch does not expect Pemex’s ratings to change due to the energy reform, but the company will benefit from the ability to find partners to share exploration risks and budgetary independence,’ said Lucas Aristizabal, Director.

Overall, the energy reform is a positive for Mexico’s competitiveness. Industrial and commercial electricity users with large enough loads to enter into bilateral contracts with independent power producers stand to see electricity costs decline as a result of the energy reform, assuming new generators are able to secure low cost natural gas from the United States or incremental gas production in Mexico. The rationale behind the ongoing energy reform is to attracting private investors in order to increase the country’s oil and gas production. Mexico has been severely underexplored, while production significantly decreased during the past decade, due to Pemex’s low investing ability. Mexico has estimated resources of approximately 159 billion barrels of oil equivalent (boe) with proved reserves (1P) accounting for 13.7 billion boe.

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Mexico energy bill to open power generation, sales to privates

logo-cfeBusiness Insight in Latin America, 12/9/2013

Mexico’s senate unveiled an energy bill Saturday (Dec 7) that would end the state monopoly over the power sector and open generation and sale of power to privates.

The bill, currently being discussed by senate committees, confirms the proposed power sector as laid out by energy ministry Sener’s head of electricity, Lourdes Melgar, in an August interview with BNamericas.

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