CFE facing itself

By Rosanety Barrios

It is now time to talk about our electric company. Although it does not have the dimensions of Pemex, it faces relevant challenges that must be solved while Mexico recovers its energy security, lost in the form of blackouts that we have experienced during the last three years and that will surely extend as long as the new CFE plants do not start operating. Let's talk about their numbers.

Perhaps CFE's biggest challenge is that its operating costs are excessively high. This is due to several reasons, such as the average age of its generation plants, which causes inefficiencies, and the use of fossil fuels, which cover the vast majority of its generation, not to mention its large labor liabilities.

Since electricity rates cannot grow more than inflation, but they do, the differential accumulates in an account receivable from Mexicans in monthly installments, which as of December 2023 was worth $98,544 million. Therefore, the CFE requires subsidies, which are necessary but create pressure on public finances.