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CFE: results in strategic indicators

The Federal Electricity Commission (CFE), a public company of a social nature that provides electricity in Mexico, released its results in strategic indicators.

To highlight: the generation of electricity in nuclear plants and the transmission and distribution of electricity are activities reserved to the State for which CFE has exclusivity.

However, the CFE may award contracts to private companies to build, expand and maintain the infrastructure.

These contracts are awarded through competitive bidding and are subject to a national content requirement.

The private sector and the CFE participate in the generation and commercialization (supply) of electricity.

To generate and commercialize electricity, a permit from the Energy Regulatory Commission (CRE) is required.

However, the CFE is the only entity that has permission to commercialize electricity for basic users.

Strategic indicators

The Electricity Industry Law prohibits vertical and horizontal integration; this provision applies to both CFE and private companies in the sector.

In 2016, CFE’s activities were separated, creating several subsidiaries (6 for generation, 1 for transmission, 1 for distribution and 2 for supply).

In 2019, the provisions regarding the restructuring of CFE’s activities were modified to reduce costs and improve management.

While the objective of this change is to create a more efficient system, it also opens the possibility for CFE activities to be reintegrated, thus re-strengthening its position in the sector.

During 2021, the Sub-Directorate of Non-Regulated Businesses (SNNR) continued with the consolidation of strategies and actions aimed at strengthening the generation process and recovering CFE’s share in the electricity market in proportion of 54 percent.

To ensure results, a Plan was issued that sets the SNNR’s strategic direction to guarantee the safe and reliable operation of the generation plants.

This plan is based on five axes to improve organizational structures, the safe execution of resources, maintenance actions in generating plants, regulatory improvement and the construction and installation of new generating plants.

 

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