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
Rehabilitation of the Ciclovía and road section Chablekal-Dzibilchaltún in Mérida
Merida, Yucatan (October 26, 2021).- Making.
Neem, the wonder tree against fungi, diabetes and even stress
Merida Yucatan, October 26, 2021, (Víctor Hugo.
Indigenous Peoples not allowed into World’s ‘Most Inclusive’ Climate Conference
Indigenous peoples comprise less than 5.
Yucatecan student wins medal in the Women’s Pan American Mathematics Olympiad
Mérida, Yucatán, (October 26, 2021).- María.
Environmentalists announce demonstration against hotel project in Punta Nizuc, Cancun
The works of the hotel of.
With an Enigmatic Vaquería, the Festival de las Ánimas officially starts in Mérida
MÉRIDA, Yucatán, (October 26, 2021).- On.
Vaccination has begun for Yucatecan adolescents with comorbidities
Mérida, Yucatán.- The application of vaccines.
AMLO announces work tour of Yucatán scheduled for Thursday, October 28th
In addition to supervising the Mayan.
Cold Day of the Dead forecast: temperatures could drop to 14ºC (57ºF)
Mérida, Yucatán.- The State Coordination of.
US citizen accused of kidnapping her 10-year-old daughter in Mérida
MÉRIDA, Yucatán, (Ocotber 26, 2021).- The.