The adjustment has occurred after the government announced last December liberalization of gasoline in 2017 and amid protests across the country by rising prices and the impact on inflation because of deregulation.
The electricity tariffs for industrial, commercial and domestic high consumption will increase in January, the Federal Electricity Commission (CFE) of Mexico reported in a statement. CFE said that the increase will not affect low-power households.
The adjustment has occurred after the government announced last December liberalization of gasoline in 2017 and amid protests across the country by rising prices and the impact on inflation because of deregulation. The biggest increase is expected for the industry, between 3.7% and 4.5%. Businesses will pay between 2.6% and 3.5% more. Meanwhile, the increase for high-consumption households will be 2.6%.
CFE explained that the increase is due to rising price of fuel used to generate electricity. The cost of natural gas rose 77% in December 2016 compared to the same month in 2015. The price of imported coal increased by 72.8% in that period.
“The increase will have a major impact on high-end consumer residential customers who pay heavily, and for industrial consumers focused on the domestic market, although it remains a competitive dollar price for exporters,” said Duncan Wood, director the Mexico Institute of the Woodrow Wilson Center . The researcher points out that two variables will be key in determining the price of inputs and set electricity rates in the coming months: the exchange rate of the peso against the dollar and demand for natural gas in the United States during the winter.
Wood believes that the creation of an energy market is positive in the long run for the Mexican economy, but that the government was wrong to promise that the prices of the sector would remain stable, something that can not be guaranteed under free market conditions. “The fall in popularity of the president is evident and the opposition has been strengthened after these measures,” he adds.
more recommended stories
Government of Yucatan paid “ghost companies” 150 million pesos to conduct health studies
The Mexican news web portal “Animal.
What to do if you lose your passport in Mexico
As much as we try to.
Victory Cruise Lines launches all-inclusive cruise-land Yucatán program
President’s Cruise to inaugurate Victory’s 2019.
Mercy Hospital marks 40th anniversary of Yucatan Heart Program
DES MOINES – Des Moines is the.
Canadian company to invest 57 million USD in Yucatán Peninsula beach resort
MONTREAL — Transat A.T. Inc. says it.
Expert warns of large tourist drop for Cancun in 2019
“The number of foreign tourists arriving.
Mexican journalist gunned down in Chiapas (VIDEO)
The public prosecutor’s office of Chiapas.
Mérida, recognized as one of the most important tourist spots in Southeast Mexico
The Municipal Tourism Directorate is currently.
Mérida Restaurant Week kicks off today!
From September 24 to 30, Mérida.
Mérida seeks to provide broader public space Internet connection
The technology management of the City.