Power Connection provides services in markets across North America including the United States and Mexico. While deregulation has been an ongoing and evolving process in the United States, it has just begun in Mexico.
Choosing an energy supplier to provide electricity or natural gas is a freedom your business has because of energy deregulation. The deregulation process began in the 1980s for natural gas and in the 1990s for electricity, and this process continues today.
What is Deregulation?
Deregulation essentially unbundles the generation, distribution, and retailing of energy - the three basic components of traditional energy utility monopolies. The deregulation process has turned energy generation and energy sales into deregulated businesses, while energy distribution, transmission and transportation have been protected as regulated businesses.
Producing Electricity at Power Plants
Moving Electricity Over Long Distances
Delivering Electricty to End Users
Strategically Using Electric Energy
For end users, this means they can now choose their energy provider, but the delivery of that energy is still handled by a traditional local utility. This means that regardless of their decisions, the energy will still be delivered as it always has been with no change in the level of service or quality.
The decision to allow customers to choose their energy provider has created a plethora of energy suppliers eager to compete for customers and provides a wealth of choices around pricing structures, contract provisions, billing options, renewable energy options and energy management services.
How Does Deregulation Impact Our Clients?
While energy deregulation has granted much more control and flexibility to businesses, it has also created a complex energy purchasing process. There are many energy suppliers that differ greatly in their capabilities and pricing structures, and contract provisions can vary significantly from one provider to another. Energy prices change daily with market fluctuations, thereby, making decisions on contract timing critical. The energy market is complicated and choosing a trusted energy advisor like Power Connection helps our customers navigate this complex marketplace.
The supply of electricity in Mexico is completely changing. It will soon change from a regulated and government administered (CFE) monopoly to a free market scheme. The opening of the market will have its benefits and risks. Businesses will now have the ability to enter into contracts to choose which company they buy their energy. In addition to the choice of energy supplier, there are important decisions regarding the contract – when to sign a contract, how long to sign a contract for, what pricing structure to choose, what are acceptable contractual terms and conditions among others.
Many businesses will seek out advice to navigate these changes from Usuarios Externos de Confianza (Trusted External Users). It is very important that the advice is appropriate so the benefits become a source of competitive advantage and a strategy to mitigate the risks. Our advice will help you obtain and analyze all the options available in the electricity market as a qualified user, and ensure optimum energy prices for your organization.