Distortion and High-Cost Sources in State-Owned Electric Utilities in Mexico

Eduardo Martínez Chombo ()
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Eduardo Martínez Chombo: Profesor de asignatura del Colegio de México, México, D.F.

Economía Mexicana NUEVA ÉPOCA, 2010, vol. XIX, issue 1, 31-89

Abstract: This paper describes and tries to quantify the effects of some factors that have affected costs of state owned electric utilities in Mexico (energy losses, fuel and labor). It is noted that the impact of the increase in fuel prices on the electric utilities’ total cost in the last years has been important. However, the “over-cost” associated to energy losses and labor is also significant and comparable to the impact of the increase in fuel prices. The structure of cross subsidies in the industry is also described, pointing out that it is complex and makes the performance evaluation of the state owned electric utilities difficult.

Keywords: electricity sector; state owned electric utilities; subsidies; electricity losses; labor costs; CFE; LyFC. (search for similar items in EconPapers)
JEL-codes: H54 Q48 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:emc:ecomex:v:19:y:2010:i:1:p:31-89

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