Fair, Transparent and Profitable Prices for Qualified UsersWed, 02/21/2018 - 15:14
Q: How is BID Energy making a difference in Mexico’s energy trading sector and what challenges have you faced?
A: Mexico’s electricity sector is highly complex and offers several areas of opportunity. Our first challenge lies in dealing with our clients’ knowledge. The hasty launch of the Energy Reform relating to market rules and regulations left a considerable deficit in generating clear and readily available information regarding the obligations of final users and the new rules of the game. Our competitive advantage lies in the tools we have at our disposal to become a strategic ally for each and every qualified user. If clients feel we are an integral part of their team and we effectively prevent onerous investments by relying on a specialized team of highly qualified professionals, we have done our job. BID Energy strives to look for the best alternatives available in the market, always offering fair, honest and profitable prices for each MW consumed by our clients. We provide an integral advisory service in which we offer our clients an exhaustive radiography composed of the key variables of their energy consumption to define the adequate price they should be paying for it.
Q: What are qualified users’ prevalent concerns with energy trading?
A: There is a generalized lack of awareness on the side of qualified users. There is almost no culture of electric-resource management in Mexico, although it represents between 30-40 percent of the total expenses of energy-intensive companies. Our interactions are generally established with a company’s purchasing department as, more often than not, companies lack an actual energy department. There is a prevalent uncertainty about potential power outages as CFE’s monopoly transitions to a liberalized competition among several suppliers. All regulatory entities involved in Mexico’s electricity sector need to work to provide clear and transparent information for final users. These users also lack technical knowledge when it comes to evaluating different energy-trading proposals, particularly if they are used to the previous self-supply scheme. Qualified users are unaware of their new obligations and are unclear about CFE’s new Transmission and Distribution divisions.
Q: How does BID Energy adapt to new regulations in the electricity sector?
A: BID Energy has a dedicated department that keeps pace with the regulatory environment and follows up on changes. Our company participates in every course or training session offered by the Ministry of Energy, CENACE and CRE. BID Energy is also a member of the Mexican Association of Qualified Suppliers (AMSCA). Given the issues faced by qualified suppliers, we decided to shift our view of being competitors to being allies to mitigate the risks from all the changes and all the elements of the market, in which what is stipulated on paper from a regulatory standpoint might not encourage an operationally open market. All AMSCA members meet at least twice a month to develop and define action programs to make our case to the relevant government agencies regarding required adjustments and to protect the interest of qualified users.
Q: How does BID Group’s added value permeate BID Energy as a qualified supplier?
A: BID Group is a 100 percent Mexican conglomerate, with over 20 years operating in different sectors. BID Group’s core business is financial, providing an essential backup for all our operations. Our conglomerate made a name for itself working in other business lines in both the private and public sectors, creating financial solutions, developing technology and generating evaluations for improvements.
Q: What are BID Energy’s objectives for the long term?
A: BID Energy wants to position itself as a company that goes beyond trading energy by becoming a strategic ally for electric energy supply, a company that takes care of its clients' interests and offers a fair, transparent and profitable price. We want to establish long-term business relationships with companies requiring our services, once they see the added value of what we provide.
BID Energy is the energy trading subsidiary of BID Group, a conglomerate offering commercial development consulting services for institutional, technological and financial operations, assisting private companies and governmental entities.