How do electricity rates affect the economy in Mexico?

In recent years, fluctuations in these rates have had a profound impact on the cost of living and the competitiveness of Mexican industries. For households, higher electricity rates can lead to increased monthly expenses, affecting disposable income and overall quality of life.

What happens if I exceed my monthly consumption limit in Mexico?

However, if your average monthly consumption exceeds this limit consistently, you’ll lose the subsidy and move into a category called Domestic High Consumption (DAC). This DAC rate is significantly higher and will sharply increase your electric bill. Each region in Mexico has its own subsidy limits based on local climate conditions.

How much energy is consumed per capita in 2024?

Prices for industry are equivalent to those in the United States, but prices for households are 70% lower. Total energy consumption per capita is 1.4 toe and electricity consumption per capita reached around 2 500 kWh (2024). Total energy consumption increased by around 3%/year on average from 2020 to 2023, and remained stable in 2024 (186 Mtoe).

How does DAC rate affect my electric bill in Mexico?

This DAC rate is significantly higher and will sharply increase your electric bill. Each region in Mexico has its own subsidy limits based on local climate conditions. For example, in the central highlands, where temperatures are mild, the limit is lower, while hotter regions like the coast allow higher usage limits.

What happens if my monthly average electricity consumption is higher?

If your monthly average electricity consumption is higher than their monthly cap, you will get charged a higher amount. This is known as a Domestic High Consumption rate or DAC (De Alto Consumo). The average monthly consumption recorded by the user will be determined by the moving average of consumption over the last 12 months.