Mexico's Energy Market Reform: Navigating the Challenges and Opportunities in the Competitive Supply Market

Type: White Paper
Categories: Power Prices, Regulation, Utilities
Date Published: 2/4/2019
Source: Enel X

Since Mexico instituted its landmark energy reform in 2016, businesses operating in the country have faced an equal amount of opportunity and uncertainty. As this white paper from Enel X explains, with access to third-party energy suppliers, Mexico’s large energy users are now able to shop for alternative supply agreements to those imposed by the state-run utility, the Comisión Federal de Electricidad. This is a significant opportunity. In 2018, prices offered by the CFE increased by about 50%, while capacity rates grew by more than 200%.

However, the competitive supply market is fraught with risk. Businesses looking to capitalize on this opportunity will need to navigate a constantly evolving network of suppliers and complex supply agreements that could leave them exposed to risk on the market or locked into unfavorable long-term contracts.

Download the new whitepaper from Enel X to learn:

• Why Mexico’s utility rates may continue to rise
• How energy market reform creates opportunities for businesses in the country
• Common challenges and pitfalls for businesses approaching the competitive supply market

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