Decrease 5% high consumption rate

Decrease 5% high consumption rate

Mexico City, Mexico 04-Aug-2022 .-The High Consumption Domestic electricity rate (DAC) in the central region fell in August 5.2 percent monthly, after reaching an all-time high in July. However, despite this reduction, compared to the same month last year it meant a 27.9 percent increase.

The DAC fee applies to households whose average consumption exceeds 250 kilowatt-hours (Kw/h) per month for one year and is made up of two positions: one for power and one fixed.

What is the main charge?

The main charge is charge for the energy consumedwhich in this month will be 7,036 pesos per Kw/h, 39 cents less compared to July and 1.54 pesos more compared to August 2021, according to CFE data.

The formula of Secretary of Finance for the monthly adjustment of this charge specifies that in addition to the producer inflation in certain sectors, the variation in the fuel prices.

This is how the payment was broken down

Taking into account that the monthly producer inflation was 0.6 percentthe variation in the fuel index would have dropped 18.2 percentdriven by a reduction in natural gas.

According to data from the Energy Information Administration (EIA, for its acronym in English), in the reference period the Henry Hub natural gas price fell 10.4 percent monthly.

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As for the fixed charge, it will be 132.97 pesos in August, 0.6 percent more compared to July Y 10.0 percent higher compared to the eighth month of 2021. Treasury specifies that the change in the fixed charge corresponds 100 percent to the inflationary adjustment to the producer.

Source: Debate

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