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ElectricityWhat is the energy reform in Mexico?
The energy reform is a constitutional reform that was presented and approved in 2013. The Energy Reform is a historic opportunity with which Mexico will be able to take advantage of its energy resources in a rational and sustainable manner. The proposal of the energy reform is to mitigate these effects by creating competitive markets throughout the hydrocarbons and electricity value chain.How many types of electricity rates exist in Mexico?
Electric rates are classified according to the use that is given to the energy, voltage level, and the demand.
It can be said that there are 3 types of rates:
1 1A 1B 1C 1D 1E 1F DAC
The above letters are a classification that is made depending on the minimum average temperature in summer in the localities where the energy is consumed.
DAC - High Consumption Domestic
The limit of high consumption is defined for each locality according to the tariff in which it is classified:
Average Minimal Monthly Temperature in Summer
When the User's Average Monthly Consumption is higher than the High Consumption Limit, it will be reclassified to the High Consumption Domestic Rate (DAC).
Industrial and Commercial
Low demand (up to 25 KW/month) in Low Voltage
High demand (up to 25 KW/moth) in Low Voltage
Agricultural Irrigation in Low Voltage
Public Lighting in Low Voltage
Public Lighting in Medium Voltage
High Demand in Average Daily Tension
HM, HMC, 6
High Demand in Ordinary Medium Voltage
Agricultural Irrigation in Medium Voltage
Industrial Demand Subtransmission level
Industrial Demand transmission level
HT, HTLWhat determine the cost of the rate?
Knowing your electricity bill is very important for all types of users whether you are a commercial, domestic, or industrial user. Understanding what type of charges are applied and what weight they have on your energy bill will allow you to develop consumption plans that generate significant savings.
Knowing your electricity bill is not an easy task, since it is a charge that varies month by month, so it must be updated.
There are 4 variables that must be considered to calculate your energy charge:
• Season of the year
• Rate type
• Consumption periods.
• Concepts that are charged
The charge for energy is variable according to the location where the electric power is consumed, so this is the first point to consider when calculating your energy bill.
Season of the year
Energy prices vary according to the season of the year, this is due to the fact that energy demand changes in different seasons of the year and this has an impact on generation costs. At the moment, the highest prices of energy are had in summer, as the high temperatures create a higher demand of energy, making it necessary that a greater number of generation plants go into operation producing an increase in the costs of energy.
The different types of tariffs are defined according to several factors such as: The use given to energy, the demand that is had, and the level of potential in the consumption centres.
Each of these rates account for different energy and capacity prices, plus the charges for the supply are also varied.
Energy does not cost the same throughout the day, so it is important to know in which periods of time the energy is more expensive.
The different periods of time throughout the day can be base, intermediate, peak, and semi-peak. The hours in which these periods occur are different according to the type of fare, the location, and the season of the year.What concepts are charged on the electric bill?
The supply of electric energy involves different costs, these costs are transmitted to the consumer through different charges. Not all charges proposed here are applied to all rates, but vary according to the rate. The charges are:
Energy. – The amount of energy in kWh consumed during the billing period
Capacity. – The charge for the maximum matching demand measured in KW registered during a period of time.
Supply. – The charge that CFE charges for the energy service and is applied to the maximum demand.
Ancillary services not included in the market (SCnM).– The charge that is made to finance the equipment and operations necessary to keep the national electrical system stable and in good working order.
CENACE. – The charge that is made for the operation and control of energy.
Transmission. – The charge for the use of the National Transmission Network.
Distribution. – The charge for the use of the General Distribution Networks.What are the types of power generation?
Electric power comes from various sources, a classification given in Mexico is according to the type of technology that produces electrical energy. The classification is shown below:
A group of conventional technologies is integrated by the units and plants that generate electricity via the use of fossil fuels as primary energy and do not account for CO2 capture and confinement equipment:
Some of the technologies in this group include: coal, combined cycle, internal combustion, fluidised bed combustion, conventional thermoelectric, and Turbogas.
The technologies considered clean correspond to plants whose source of energy and electrical generation processes produce emissions or waste in quantities lower than the thresholds established in the various applicable provisions.
In order for a power source or power generation process to be considered as Clean Energy, its CO2 emissions must be less than 100 kilogrammes per MWh generated, as long as the provisions that determine the maximum emission or waste thresholds are not issued or applicable to Clean Energies.
Some of the technologies included in this group are: Hydroelectric, Nuclear, Wind Power, Geothermal, Solar, Solar Thermal, Bioenergy, and Efficient cogeneration.What is solar energy?
Solar energy refers to the use of the Sun's radiation by converting it into other types of energy, mainly thermal or electrical energy.
To convert solar radiation into electrical energy, the most common means is through photovoltaic cells (usually made of silicone) that capture solar radiation and convert it into electric current.What is wind power?
It is the use of energy from air currents, this type of energy has been used for various activities for a long time, including: agricultural irrigation, water pumping, to grind grains, and, currently, for the generation of electric power.
The transformation of air currents into electrical energy is done through wind turbines, which convert the kinetic energy of the wind into electrical energy through the movement of blades.What is hydroelectric power?
It is the use of water currents to generate electricity. The transformation into electrical energy is done by hydroelectric turbines that rotate thanks to the circulation of water and produce electrical energy.
This type of power generation technology is the oldest and one of the most used generation sources due to its high efficiency and response speed.What is the Wholesale Electricity Market (MEM) in Mexico?
The Wholesale Electricity Market (MEM) is a market operated by CENACE in which the Market Participants (PM) may sell and purchase energy, capacity, Clean Energy Certificates (CEL’s), ancillary Services, and any other Associated Products as required for the operation of the National Electric System.What is CENACE?
The National Centre for Energy Control (CENACE) is a decentralised public body whose purpose is to operate the Wholesale Electricity Market, exercise the operational control of the National Electric System, guarantee the security of the system, as well as open and not unduly discriminatory access to the National Transmission Grid and the General Distribution Grids.Who can participate in the Wholesale Electricity Market?
• Qualified Users Market Participants (UCPM)
• Basic Services Providers (SSB)
• Qualified Service Providers (SSC)
• Exempt generators (Represented by SSB or SSC)
• Last Resort Providers
• Non-Supplier MarketersWhat is an exempt Generator?
Exempt generators are small power plants with a potential lower than 0.5 MW, which do not require a permit to generate electricity.
These generators can sell their electricity and Associated Products to a Basic Services supplier, for which the CRE will calculate the applicable considerations. Exempt Generators may also participate in the Wholesale Electricity Market through a Qualified Service supplier.What is a Generator?
A Generator is a permit holder that accounts for power plants that generate more than 0.5 MW. The generators participate directly in the Wholesale Electricity Market, where they sell their electricity daily. They can also participate in the long-term auctions (SLP) that are held to ensure supply to the Suppliers and to enter into contracts with Qualified consumers and Qualified Suppliers to sell their electricity and Associated Products.What is a Qualified Service Supplier (SSC)?
Represents the Load Centres in the Wholesale Electricity Market that correspond to Qualified consumers that do not participate directly in the Wholesale Electricity Market. Nexus Energía MX is an SSC and, through this permit, can sell electricity to final consumers, as long as they are recognised as Qualified consumers.What are the Associated Products?
They are products linked to the operation and development of the electric industry, necessary for the National Electric System to function efficiently, with quality, continuity, safety, and sustainability. These products include:
• Clean Energy Certificates (CEL’s)
• Financial Transmission Rights (DFT’s)
• Ancillary Services
• Controllable Demand
All have commercial value and their commercialisation is carried out in the Wholesale Electricity Market, as well as through OTC (Over the Counter) contracts.What are Clean Energy Certificates (CEL)?
A CEL is a title that certifies the production of clean electrical energy. The value of the CEL is for each megawatt-hour of clean energy.What are Electric Coverage Contracts?
These are contracts between MEM participants for the supply and purchase of Energy, Power, Clean Energy Certificates, or any other Associated Products during a period of time and at an agreed price.