Member Article

On December 28, 2005, the Mexican Ministry of Finance published in the Federal Official Gazette notice of an increase in domestic electricity power supply charges to be implemented during the year 2006. Such increase will not exceed 4% and will be put into effect gradually, month-by-month, throughout the year. As of the end of 2004, Mexico had 24 million domestic power supply consumers. The above mentioned increase is consistent with the series of steps published on September 12, 2005 by the federal government in order to modernize the energy system and make it more efficient. Nevertheless, charges applicable to industrial power supply users will be subject to higher increases, mainly due to the fact that such charges are adjusted based on increases in the prices of fuels used by government owned power generation companies (the Comision Federal de Electricidad and Luz y Fuerza del Centro) for purposes of generating power. It is important to point out that domestic power supply charges for the year 2004 increased by 4.8%, while industrial power supply charges increased by 22.5% in the same year. If you need further information, do not hesitate to contact the lawyers of the area, Daniel A. Del Río [email protected] or Juan Carlos Serra [email protected].