If the self-supply contracts are eliminated, the companies that resort to this option will face an increase in production costs and with them will be forced to raise the prices of merchandise to the consumer, which “irremediably” will generate inflation in the country, the Chamber warned. National of the Transformation Industry (Canacintra).
Juan Manuel Chaparro, president of the Canacintra Industrial Development Commission, alerted legislators that the electricity reform initiative proposed by the Executive “leaves out any possibility of competition – even if the government denies it – to producers and partners. current self-supplied by this tax measure in favor of the empowerment and preponderance in the Mexican market of the Federal Electricity Commission (CFE) ”.
He explained that by taking control, the CFE would be taking attributions from the regulatory body and controlling participant, due to the disappearance of the Energy Regulatory Council (CRE), the National Hydrocarbons Commission (CNH) and the dependency of the National Energy Control Center (Cenace) to the CFE.
Chaparro pointed out that the issuance of the so-called Clean Energy Certificates (CELs) in favor of the CFE, without having a technical evaluation by a third party; The Commission will become “judge and party”, thereby destroying the national electricity market, creating an electricity monopoly, as well as altering the principles that require legal certainty.
If the government resorts to subsidies for electricity rates so as not to denote the increase in these, then “it would be paying the excess costs – expenses to a greater problem triangulated in other areas; that without a doubt, would affect consumers in other consumer products and even in irregular and poorer levels of public services than the current ones, ”warned Canacintra.
If this type of action is carried out in the electricity sector, “a totally inflationary pressure would inevitably be generated throughout the country and it would be directly impacting the industries that have self-supply contracts with other legacy power plants and with it , making the production costs of its products even more expensive, which are aimed at consumers ”, said the representative of the Industry.
In addition, what is worrying, he said, the industry in general would be less competitive due to the high costs of electricity; and therefore, they would expect increases in their costs for electricity consumption; effect that some companies had already avoided by using renewable energy.
He said that a large part of the national business community considers that this initiative is unjustified and anticompetitive, by putting the CFE on the stage as the predominant entity, “it will cause a delay and setback in the modernity of the country and a low level of environmental protection.”
Reference-www.eleconomista.com.mx