Will CFE Fix Its Tariffs?
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Will CFE Fix Its Tariffs?

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Cas Biekmann By Cas Biekmann | Journalist and Industry Analyst - Thu, 04/23/2020 - 12:54

There was confusion this week as CFE promised to freeze its consumption rate qualifications for domestic users but energy bills could still increase, industrial users reported. Solar panels reached world record efficiency, among other interesting developments. As natural gas prizes climb slightly in the US, Mexico sees production opportunities. In other news, oil tankers are stranded offshore due to low oil prices and dropping demand brought on by COVID-19.

Read it all in your weekly roundup!

Will CFE Fix Its Tariffs?

CFE announced on April 19 that households would not be classified differently under a high consumption rate (DAC) on their energy bill, regardless of steep increases in energy use. One concern for energy users is that while rates might be frozen, the general price for energy could still go up. CFE denied that last week energy prices increased by 4 percent. However, last week CFE did notify users about an increase in energy prices (MX$0,002)  The increase might not only concern regular energy users. Industrial users see a different increase, reported the president of the Confederation of Industrial Chambers (CONCAMIN) Francisco Cervantes, on Twitter.

CFE received a downgrade from rating agency Fitch last Friday along with PEMEX, following a general downgrade for Mexico.

Solar Panel Developments Lead to World Record Efficiency

Two major solar developments come from scientists at the National Renewable Energy Laboratory (NREL) in the US, reported Science Alert. Their main development is a “six-junction” solar cell, that manages to convert intensified light into electricity with an efficiency of 47.1 percent. It is a world record for efficiency, under conditions of concentrated light that has beaten the previous record by 1 percent.

Another significant development is a tandem perovskite solar cell with 26 percent efficiency. This development stems from researchers at Arizona State University, reported PV Magazine.

Engineers at the Helmholtz-Zentrum in Berlin created a new kind of tandem cell as well. The cell is made from stacked silicon and perovskite and reached a 24.16 percent efficiency. More developments were announced by researchers at Monash University in Australia that are considered both extremely light and very flexible. Although the 13 percent increase in efficiency it boasts makes it less interesting for panels, researchers say it can revolutionize wearable tech for the future.

Natural Gas, Mexico’s Potential Future Asset

Earlier this week, Natural Gas Intel (NGI) reported that natural gas operators in the US were regaining control of the market and predicted prices to move “sustainably” above US$3 per Mcf. This is directly related to dwindling oil supplies in the US. Tudor, Pickering, Holt & Co. and Goldman Sachs Commodities Research both predicted a moderately positive outlook for natural gas in the US. Patrick Rau, Director of Strategy and Research at NGI, predicted a rise in prices in Mexico as well. This is because Mexico imports a lot of natural gas from the US.

Although Mexico has no shortages of natural gas on its own turf, cheap prices per Mcf of gas in the US have thus far proven to be too attractive to miss out on. This leaves room for optimism: if the prices in the US stay at acceptable levels for Mexico, imports will continue. Once they rise above this level, Mexico has plenty of opportunity to stand on its own feet.

Lack of Storage Strands Oil Tankers Offshore

The lack of oil storage which gave way to negative pricing on Monday is being seen in Mexico with up to 15 oil-laden tankers stranded off the country’s coasts on Wednesday morning. The situation has been generated by the COVID-19 pandemic and price collapse, which saw Mexico’s crude oil basket fall to minus US$2.37 per barrel on Monday.

Photo by:   Pixabay

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