CFE Looks Back on 2022 Achievements

CFE reported the goals it has achieved in 2022. Throughout the year, the state company strengthened its infrastructure, improved purchases and spending, built infrastructure for the program Internet for All and retained low electricity prices below inflation levels. The document also mentioned the previous administration’s energy policy and the 2014 Energy Reform, labeling it as a “dismantlement project.”

Regarding infrastructure, CFE reported that through self-financing and support from national and international development banks, it plans to build 16 power plants, including a solar park, and will modernize 16 hydroelectric plants with an investment of MX$1.1 billion (US$57 million). As for 2022, it stated that it invested MX$78 billion (US$4.07 billion), four times the investment made in 2021. CFE said it will generate 54 percent of the electricity demand in Mexico. The company projects to add 3,466km of transmission lines toward 2024. For distribution, it plans to add 7,387km of power lines.

As for acquisitions, CFE said that it purchases 93 percent of its goods through public and simplified tenders, which has saved it MX$21.17 billion (US$1 billion). The company highlighted its alliances to export natural gas. CFE partnered with TC Energy to transport natural gas from the US to Tuxpan, Veracruz expanding pipelines by 778km with a US$4.5 billion investment. CFE also allied with New Fortress by sealing a deal to sell its natural gas from Altamira, Tamaulipas, while it also acquired a plant from New Fortress to solve energy problems in Baja California. The company furthermore reached an agreement with Sempra for the development of an LNG plant in Topolobampo, Sinaloa with an investment of US$2.5 billion. “With these alliances, CFE will ensure the supply for its plants. Sixty percent use [natural gas] as a transition fuel with low emissions, both installed and under construction,” announced CFE.

Regarding electricity prices, CFE reiterated president López Obrador’s instructions to avoid increasing tariffs beyond inflation levels. While by September 2022 inflation reached 8 percent, low consumption domestic rates increased by 5.9 percent, industrial rates by 6.3 percent and commercial rates by 5.9 percent. 

As for finances, CFE shared that as of Dec. 31, 2021, CFE's total revenues amounted to MX$566.6 billion (US$29.6 billion), 12.7 percent more than at the end of 2020, while the losses reported in 3Q22 were proportionally lower than the increase in energy prices.

According to Mexico Evalúa, CFE had received MX$79.3 billion (US$4.09 billion) to subsidize domestic electricity tariffs by the end of 3Q22. What is more, the Ministry of Finance and Public Credit (SHCP) announced that it has an MX$76.62 billion (US$3.9 billion) budget reserved to subsidize electricity during 2023. Furthermore, in January 2023, electricity tariffs for CFE’s basic supply will see an average increase of 0.61 percent compared to December 2022. By December 2023, CFE expects an increase of 7.16 percent.