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

Author

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  • Eduardo Martínez Chombo

    () (Profesor de asignatura del Colegio de México, México, D.F.)

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.

Suggested Citation

  • Eduardo Martínez Chombo, 2010. "Distortion and High-Cost Sources in State-Owned Electric Utilities in Mexico," Economía Mexicana NUEVA ÉPOCA, , vol. 0(1), pages 31-89, January-J.
  • Handle: RePEc:emc:ecomex:v:19:y:2010:i:1:p:31-89
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    File URL: http://www.economiamexicana.cide.edu/num_anteriores/XIX-1/02.EM.Mtz.Chombo-EM(31-89).pdf
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    More about this item

    Keywords

    electricity sector; state owned electric utilities; subsidies; electricity losses; labor costs; CFE; LyFC.;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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