Understanding Your Mexican/ CFE Hydro Bill

Understanding Your Mexican/ CFE Hydro Bill    

Tara A. Spears

For many foreigners it is a shock to receive the monthly electric bill, especially if they have used their air conditioning. Seeing that string of numbers is enough to cause a heart attack. “But, but, last month it was only a fraction of this new amount!” you wail. Yes, it is possible for an individual home bill to jump astronomically from one month to another; this article will explain the company billing policy. There’s hope for keeping your electric in line-just remember that you can control the outcome of your bill.

To summarize: the national Mexican electric energy company (CFE) consists of eight regional rates, with three sub-rates based on usage within each of those rates, and billing rates that vary by time of year. ALL of these factors are used simultaneously to compute your monthly bill. Depending on where your kwatts usage falls, you may be eligible for government subsidy- which reduces the amount you actually need to pay. Yes, it is a very complicated rate assessment. Read on for a breakdown of each item.

According to CFE official webpage, “as of March 5, 2018: due to government regulations, residential rates have remained unchanged from 2017 to 2018. There were errors by CFE billing department that changed the names of the rates during the first two months, but these were corrected and the rates will return to their original names and structures that are explained below.” My electric bill has had a different format for the last six months so the photos may not match exactly to what you receive.

Don’t shoot me but actually CFE has a very generous billing plan that assists the low income and gouges the wealthy or high usage people that technically afford it. By deeply charging the excessive users this rate plan provide a subsidy for the low income/retired people. For the more than fifteen years that I have lived in Mexico I have benefitted from this rate structure: I have remained in the basic “1 subsidized” tier and have amazingly small electric bills. Study this chart:

For domestic use, the CFE has eight rates: 01, 1A, 1B, 1C, 1D, 1E, 1F and DAC (domestic high consumption rate.). The letters serve to indicate the different regions in Mexico since each one varies in terms of its average monthly minimum temperature.  Within each of these rate categories there is a sub range: 1. Basic consumption; 2 Intermediate consumption (in the summer months this step is further divided into two: low intermediate consumption and high intermediate consumption ); 3. Excess consumption (DAR).

To understand your CFE electric receipt a little better there are three variables that you should consider: 1. Know your regional rate which is 1B for Jaltemba Bay; 2. The season, currently listed as ‘dias de verano’ for summer and a higher per kWh charge than October through April; 3. Your kilowatts consumption per hour (kWh). Look at the charts to see how many kWh for basic rate (400) and check your meter periodically to see how fast you’re moving towards that number.

Rate 1 Subsidized:   This is the rate that applies for domestic use and that has a subsidy from the government, as long as the charges are not considered high consumption (red zone or DAC rate). During the hottest months, many appliances have to be kept on a lot of the time, or work at a higher power (mainly the refrigerator and the air conditioning). Therefore, in the warmer regions of the country, a special subsidy is applied, which runs from April to September.

Note that you can still lose your subsidy during the seasonal period if you keep electrical items on continuously, such as computer or television… I know you like the TV to provide background music during the day but this does significantly increase your bill.

Now do you understand why the light bill can be triggered so much if you exceed a few kilowatts?  Plus we must still add 16% VAT tax to that cost! The key to having an affordable electric bill is to know the kWh numbers for each level and self-monitor your usage to keep in the basic or intermediate range. Or, if you have deep pockets and don’t care, you can use away but then don’t cry when your monthly hydro bill is in the thousands.

For many non-Spanish speakers, even the bill layout is confusing. Here is an approximate translation of the CFE bill front and backsides:

  What the line items mean in English:

1. General data of the user. Your name and address.
2. Service number. The data that identifies you before the company.
3. Meter number. Code that identifies the meter of your house or business.
4. Previous reading. Indicate the number of kilowatt hours (kWh) recorded on your meter at the end of the previous two months.
5. Current reading. Indicate the number of kWh recorded on your meter in the most recent reading.
6. Multiplier. The result of the subtraction of the readings is usually multiplied by 1.
7. Consumption. It is the difference between the previous and the current reading and indicates the number of kWh that you consumed the last two months.
8. Period of consumption. It shows you the start and end date of the registered consumption.

9 Days in billing period. The number of days you are charged.

10. Daily average. With this figure you get an idea of ​​the average kWh that you consumed each day during the last two months.
11. Consumption history. If you need references or comparisons to observe your consumption trend of kWh, in this section consult the previous two months of the last two years. On my most recent bill instead of the curved graph, your use is plotted on a straight line (in the middle of the page) The basic/subsidized use is green becoming yellow becoming red (towards the right side.)

I’m certain that the reason CFE goes to the expense of a colored graph is for the illiterate customers to understand.

12. Cost of production. This amount indicates the actual cost of the energy you consumed at this address.
13. Government contribution. It is the difference between the real cost and the total to pay, it is called subsidy.
14. Important notices. In this box, savings tips, sports or cultural events or programs offered by CFE are published. You are also notified if the consumption of your receipt is estimated because the reading could not be taken.
15. Service number. These twelve digits are your customer identification so you can perform transactions such as paying at the bank or CFE ATMs, or to check your amount and payment deadline via customer service number (071)..
16. Total to pay for the billing period. It is the net amount including taxes, you owe.
17. Payment deadline. Important to pay the bill prior to this date to avoid suspension of service.
18. Use. Indicates if the use is domestic or commercial and, therefore, which type billing rate.
19. Rate. With this number you can identify the rate that is applied to you when calculating your consumption. Domestic tariffs are classified according to temperature averages and it is different in different parts of the Republic.
20. Lines. This tell the number of connecting lines of electric current that you contracted for your house.
21. Billing (breakdown of various charges that total the final amount owed)

Note: The price of kilowatts changes monthly, so this article is only an approximate reference.

22. SHCP identification information. These data, such as the seal and the digital chain, are for exclusive identification before the Ministry of Finance and Public Credit.

Tips to reduce your Mexican hydro bill:                       

 One way to reduce your electric bill is to save money by installing a solar panel system interconnected to the CFE. This means that you consume the energy that you generate with your solar system, but if the solar energy is not enough for your usage, you also have access to the electricity of the network, that is, you have the two energy sources.

Perhaps you are a seasonal renter therefore installing solar is not an option. There are still easy behavior options that will have immediate results towards lowering your monthly bill.

Set the thermostat at a somewhat warmish temperature and leave it there. It is perfectly comfortable to have the thermostat set at 80 degrees (27 C) 2. Try to prevent direct sunlight from entering and heating up the house. Open and close window coverings on a schedule.  As a default setting, leave curtains closed. In the morning, we open the curtains on the west side of the house and leave those on the east side of the house closed, etc. 3. Dress light inside the house. 4. Don’t use the oven. Find easy meals that can be prepared on top of the stove or on the grill.  Another option is to prepare food ahead by baking in the early morning.  5. Pay attention to the weather. If it’s overcast or low humidity, don’t turn on the air conditioning.  6. Limit use of electric clothes dryer. Hang laundry outdoors to save big. 7. Use fans. Most portable and ceiling fans typically use less than two dollars a day. Even better is to turn off the fan when you are not in the room. 8. Lastly, turn off A/C and most lights when you’re not home. Keeping a TV or A/C running when no one is enjoying it is a huge waste and increases the bill.         

Receiving an electric bill with an amount that is twice what you normally pay can be avoided.  It’s a common situation but it has an explanation and a remedy. Learn how the rates of the Federal Electricity Commission (CFE) are established and how, something as simple as leaving a light or TV on when no one is using it will exponentially increase the cost of the kilowatt. Do not pay more … use your electric wisely!