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How much does electrical power cost?

15 Jul 2014

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Electricity in most areas of Mexico is monopolized by a government-run company called Comision Federal de Electricidad or CFE. Rates are established for residential, commercial and industrial users, and they vary by region, season and time of use.

On average, manufacturers can expect to pay CFE $0.135 USD per kilowatt hour depending on the age/efficiency of the equipment drawing the power, the frequency of startup and shutdown and time of day when machines are in use.

In addition to receiving a monthly bill from CFE for the consumption of electrical power, manufacturers must pay CFE for electrical capacity which is approximately $100 USD per kVA.

For example, if your operation in Mexico requires a 500 kVA transformer and you plan to run it at 80% of its capacity, then you will need to have 400kVA of service capacity connected to your transformer. CFE often provides some kVA service for free, i.e. 200 kVA and the additional 200 kVA (in this example) would need to be purchased by the manufacturer at 200 kVA x $100 USD = $20,000 USD.