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pacificobob
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CFE raises rates!
4% ! WTF? How untimely when so many can use some financial relief.
The CFE bill represents one of many local families that i know larger monthly expenditures.
[Edited on 4-14-2020 by pacificobob]
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BajaBlanca
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Terrible.
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bajatrailrider
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Wow killing me now at 30 bucks every two months. I have 4 welders too.
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John Harper
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Need to maintain ROI somehow now that energy consumption has dropped off. Sell less for more. To a captive audience.
I switched to "time of use" rates recently at SDGE. It will be interesting to see my next bill, as overall energy consumption has dropped
significantly, which should mean more utilization of lower cost energy versus high cost energy (peaker plants, etc.) sources. That's if you believe
the propaganda about "time of use." Somehow, I doubt that will happen. We shall see.
John
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pacificobob
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I didn't intend to present this story as one concerning relativity well off expats.
Im just seeing locals i know sweating the light bill. I know families in modest houses....TV,couple of fans, fridge, washer out back...and they have
enormous bills....easly 40% of the net household income.
A 4% increase is a big deal......for some.
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Alm
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A family in modest house with TV,couple of fans, fridge and washer probably pays under 200 pesos a month.
200*40%= 80 pesos is their monthly household income?
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Bruce R Leech
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what is your source on this
Bruce R Leech
Ensenada
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surabi
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Quote: Originally posted by Alm  | A family in modest house with TV,couple of fans, fridge and washer probably pays under 200 pesos a month.
200*40%= 80 pesos is their monthly household income? |
Way less than that. I run a fridge, washing machine, lights, fans, toaster, blender, two industrial sewing machines and an iron and my recent bill was
134 pesos for 2 months. It's around 200 for 2 months in the summer when I have all the fans on all the time.
[Edited on 4-15-2020 by surabi]
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AKgringo
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At todays exchange rate, 200 pesos equals 8.46 US!
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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Alm
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My typo, sorry: if 200 pesos bill = 40% of income, then income is 500 pesos. That is, if they pay 200 pesos - I tried to be generous here 
They spend on TV shows more than that.
4% increase on 100 pesos bill is 4 pesos. Mexican rates are cheap even for the poor (or, should I say - especially for the poor). Modest households
without AC are sweating their CFE bill for no reason, I'm seeing this all the time. Older people are naturally paranoid, remembering the times when
you could buy a whole chicken for 10 pesos but forgetting that it was many decades ago.
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John Harper
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I think the question is, why do they need to raise rates 4%?
We are not in an inflationary economy, neither US nor Baja. Demand is way down from big users like manufacturers, breweries, distilleries, resorts,
restaurants, etc. Same with petroleum.
John
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AKgringo
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Sounds like reverse economy of scale. Although the cost of production of the electricity is lower for each megawatt, they aren't selling enough
megawatts to make their target income.
The local water utility did a similar thing here in Nevada County. During the drought years, they adopted a program which penalized heavy water use
by charging higher rates per unit as the volume increased.
People responded well to the water conservation plan and cut way back on consumption. NID now plans on raising the rates again, because they are not
selling enough water to hit their revenue target!
If you are not living on the edge, you are taking up too much space!
"Could do better if he tried!" Report card comments from most of my grade school teachers. Sadly, still true!
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mtgoat666
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| Quote: Originally posted by AKgringo | Sounds like reverse economy of scale. Although the cost of production of the electricity is lower for each megawatt, they aren't selling enough
megawatts to make their target income.
The local water utility did a similar thing here in Nevada County. During the drought years, they adopted a program which penalized heavy water use
by charging higher rates per unit as the volume increased.
People responded well to the water conservation plan and cut way back on consumption. NID now plans on raising the rates again, because they are not
selling enough water to hit their revenue target! |
Public utilities operate differently than supply/demand market pricing. Reality is you public utilities are necessary,... and they got to be paid
for. If you are comfortable to rich, or really dirt poor, you can probably be happy living off the grid.
Public utilities got to maintain revenue for operations even in cases where total demand is falling.
If you don’t like it, then go off grid. Good luck!
Woke!
“...ask not what your country can do for you – ask what you can do for your country.” “My fellow citizens of the world: ask not what America
will do for you, but what together we can do for the freedom of man.”
Prefered gender pronoun: the royal we
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mtgoat666
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| Quote: Originally posted by John Harper | I think the question is, why do they need to raise rates 4%?
We are not in an inflationary economy, neither US nor Baja. Demand is way down from big users like manufacturers, breweries, distilleries, resorts,
restaurants, etc. Same with petroleum.
John |
Demand down, so falling sales, but cost of O&M stays the same,... got to make up revenue to cover expenses...
Woke!
“...ask not what your country can do for you – ask what you can do for your country.” “My fellow citizens of the world: ask not what America
will do for you, but what together we can do for the freedom of man.”
Prefered gender pronoun: the royal we
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bajatrailrider
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Fake news who started this
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pacificobob
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https://www.theyucatantimes.com/2020/04/cfe-raises-electrici...
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pacificobob
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https://mexiconewsdaily.com/news/cfe-hikes-up-to-300-threate...
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pacificobob
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https://www.theyucatantimes.com/2020/04/cfe-raises-electrici...
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paranewbi
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Location: San diego
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| Quote: Originally posted by AKgringo | Sounds like reverse economy of scale. Although the cost of production of the electricity is lower for each megawatt, they aren't selling enough
megawatts to make their target income.
The local water utility did a similar thing here in Nevada County. During the drought years, they adopted a program which penalized heavy water use
by charging higher rates per unit as the volume increased.
People responded well to the water conservation plan and cut way back on consumption. NID now plans on raising the rates again, because they are not
selling enough water to hit their revenue target! |
Exactly the same happened in San Diego. The system set up to deliver massive amounts of water (use) still needed to be maintained and administered to
when usage went down during the drought. You can't shrink the costs of providing when the need decreases in a public system.
The same is happening now in most cities. Revenue from sources (taxes...hotels, sales, etc.) is falling as we all hunker down in fear. Yet, the
government that was supported by those systems must (fallacy based on fear) be maintained (fed it's bloated meal) because we (think) we need them to
tell us how to be herded.
Same ol' the less you need, the more it costs.
Actually the reverse of reality.
[Edited on 4-15-2020 by paranewbi]
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John Harper
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My second comment was merely a rhetorical question, to focus back on the original issue.
Read my first comment, that's what ROI is. Return On Investment. You have an incredible grasp of the obvious.
John
[Edited on 4-15-2020 by John Harper]
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