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

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, this access to third-party energy suppliers offers a significant opportunity--even as the competitive supply market is fraught with risk.

February 4, 2019

Published by SED

Power Prices, Regulation, Utilities

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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