César Hernández
View from the Top
César Hernández
Former Deputy Minister of Electricity
Ministry of Energy
César Hernández was named Deputy Minister of Electricity at the Ministry of Energy in Feb. 2014.
César
Roundtable
César Hernández Ochoa
César Hernández Ochoa
Deputy Minister of Electricity

The electricity market was expected to grow gradually since its inception and it will become increasingly open as it matures. The market is designed to stimulate competition so it operates under a model where cheaper energy is sold first, favoring models and technologies that generate energy at lower costs. In the long term we believe that these models will bring electricity costs down through the incorporation of new technologies and the displacement of older plants. Competitivity will generate incentives to improve services or to lower costs, but this is a market process and thus the determination of costs is not under control of any regulatory entity. It will also cause electricity prices to fluctuate depending on demand during the year. In periods when there is significant demand, prices will rise and vice versa.

As a direct result of the Energy Reform, the Mexican electricity market experienced a transformation that has caused uncertainty among the market
Derek Woodhouse
Roundtable
Derek Woodhouse
Partner
Woodhouse Lorente Ludlow

The short-term auctions are among the big puzzles for next year. The Ministry of Energy already published the capacity market manual, a milestone for the industry, and the next one on our list is the manual for establishing three-year contracts for capacity and electricity, known as short-term auctions. CFE’s subsidiaries are still in the process of putting their structures together but next year they will play an important role in the market. For us, 2016 was a transition year but 2017 will be the actual period where the market is up and running, boosting real competition. We can say without a doubt that next year will be the most interesting period for the Energy Reform. We also expect consultancies and law firms to step up their game, which would make the reform’s implementation more dynamic and faster and would spice up competition.

The Energy Reform has triggered changes across the industry in a short period of time, forcing power companies to react and adapt quickly.
César Hernández
View from the Top
César Hernández
Deputy Minister
Ministry of Electricity
César Hernández was named Deputy Minister of Electricity at the Ministry of Energy in Feb. 2014.
MEXICO'S ELECTRICITY GENERATION BY SOURCE IN THE NEW POLICIES SCENARIO 2000-2040
Analysis
The Energy Reform has transformed the electricity industry, reshaping the way power will be generated, transmitted, distributed and sold.
mef 2017
News Article
Mexico energy Forum 2017: Mexico’s Electricity Spot Market Sees Increasing Interest presentation highlights
Many of CFE’s assets can be monetized in a way that generates resources that are not contemplated in the budget but are available in the market
Insight
César Hernández Ochoa
Undersecretary of Electricity
Ministry of Energy
CFE is proactively assuming the challenge of taking the necessary actions.
MEF 2016
News Article
Mexico Energy Forum 2016: Transforming the Energy Sector presentation highlights
Purchasers are reluctant to pay for the variation in price between the two spots
Analysis
One of the new instruments intended to help the development of the wholesale electricity market is financial transmission rights (FTRs).
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