New entities authorized to provide residential power service in Mexico in addition to CFE

On August 3, 2018, the Mexican Regulatory Energy Commission (CRE) authorized three new permits for Electric Supply in the modality of Basic Supply (i.e., the supply to customers with a demand below 1 MW) to the companies BH Energy Supply, S.A.P.I. de C.V., Enlace y Representación Gubernamental T&M, S.A. de C.V. and Suministro Básico del Centro SUBACE, S.A. de C.V. (a supplier incorporated by the Mexican Union of Electricians).

Prior to the 2013 Energy Reform, the Federal Electricity Commission (Comisión Federal de Electricidad or CFE) held the monopoly over the electric supply to final users. After the reform, basic suppliers were introduced in the Electricity Industry Law, allowing private companies to participate in such activity. Prior to the issuance of these new permits, the only Basic Services Supplier in the Mexican Electricity Market was CFE Suministrador de Servicios Básicos, a subsidiary of CFE.

At this point, not a lot of information is available as the relevant supply permits are in the process of being published in CRE’s website. We will supplement this note accordingly.