Discussion in 'Living in Cancun' started by johndish, Jan 10, 2013.
How do utility costs in Mexico compare?
forgot orlando pricing
1st 1000 watts 7.047 cents
above 1000 watts 8.28 cents
Hi, John. The system in place for electricity here is complex and varies according to season and location, with hotter places enjoying somewhat lower rates.
[In this post, I'm referring to the rates published by CFE, including the taxes of 16% imposed on electric consumption for Tariff Class 1C that is in effect here in Cancun. These are available at all offices of the CFE.]
If we use a figure of 1,000 KWH per month consumption, it would produce a bill in winter of approximately 2,500 pesos, per month. Winter cost of one KWH would then be just over 17 US cents.
While most users do not consume 1,000 KWH in any month, some do, and are punished by higher electric rates; for CFE customers, the less you use the cheaper the effective rate, owing to government subsidies. Those same subsidies are higher in summer than winter, helping to reduce the cost to those, like us, who prefer to be cool.
We normally use about 250 KWH per month, winter, running our a/cs mainly at night to allow us to close the windows to suppress noise. This produces a bill of about 400 pesos, per month (monthly average of the two month billing period used here).
In summer we use the ac about 20 hours/day, and consumption rises to about 500 KWH per month. This produces a bill of about 600 pesos, per month.
In any case, it is clear that we are paying more per KWH, winter and summer, than those living in Florida.
I'm pretty sure 1000 kWh/month is going to get the account moved to the DAC tariff. Once there, there are no subsidies, and there are no tiered rates like you have in the 1B/1C tariffs. Every kWh costs around 3.4 pesos before taxes and base charges. After taxes that's closer to 32-33 cents/kWh.
One of my meters is on DAC, and my total use on my December bill was 1034 kWh. For November/December 2012, 1034 kWh cost 4269 pesos on DAC.
1000 kWh per month is going to cost closer to $330 USD per month.
It's true, big consumers are hit hard when it comes to electric rates.
With our 134 square meters of air conditioned space we've never used more than an average of 600 KWH of electricity per month, keeping us well below the range that would trigger a reclassification to DAC, and keeping our electric bills comfortably low.
Cancun, where we live, is lucky in that it's in a Tariff 1-C area: Playa is not, being classified 1-B, and having much lower subsidies, and lower threshholds for being bumped to DAC; hence, higher costs for electricity.
Is Puerto Morelos 1-C or 1-B?
Unfortunately Puerto Morelos is 1-B, which makes a HUGE difference. With 1-B, you get kicked up to DAC if you average more than 400 kWh per month. With 1-C the threshold is 850 kWh. With 1-C, I would not be subject to DAC. By my calculations, if PM were 1-C, my Nov/Dec bill would have been around 1300 pesos instead of 4300.
The different classifications make no sense to me - it's based upon average minimum temperaure during the summer months, and I can't see that there is really a difference between Cancun and PM. But according to CFE it's an objective process based upon temperature data.
You've clearly done your homework, Johnny, and I agree with everything you've said. The temp difference (annual mean) between Cancun and Puerto Morales is just one degree centigrade. You'd probably trade for one degree hotter weather if you could have that large savings on electricity as a result.
When we were considering a move to Mexico I was reading a lot about Merida, where it gets dramatically hotter than it does here, and I was alarmed. We thought through how we would manage things so as to not get burned by big bills if we decided to live there. Much of what we considered has not proven necessary, but might have if we'd chosen somewhere other than Cancun.
Our bill for mid Nov to mid Jan was 630 pesos, running the a/c at night and part of the days. (The bill would have been around 800 pesos had we not left town for two weeks at Christmas.)
GLADLY! One degree in exchange for subsidies would be an easy trade. I have had a few bills during summer months around 10,000 pesos for two months, and we use the a/c rather sparingly - usually only at night.
And by "subsidies", I don't mean from the government. Clearly, the system is set up so that those stuck with the DAC subsidize those that are not. My other bill that is on 1-B (not DAC) claims that the government's cost of production is about 3.9 pesos (approx 31 cents) per kWh. Given that I can buy electricity in the states for about 7 cents/kWh, I can't accept this statement.
Oh well, I can't fight the system, but I can complain about it!
BTW - new development, at least for me: You can now pay CFE online by credit/debit card. Previously, online payment required a Mexican bank account.
Aguakan is also now accepting online credit/debit card payments.