Is my company allowed to buy electricity from a third party?

It depends upon how much power is your company consuming. There are two legal schemes under which a company can buy electricity from a third party.

On one side there is the Qualified Supply scheme that came to exist with the publication of the Electric Industry Law (LIE) in 2014. Under this scheme it is necessary to have a maximum demand of at least 1,000 kW during the last year, either in each facility or summing up the maximum demands for all of them.

On the other side there is the Self Supply Schemethat exists since the 1990’s and that LIE allows to continue operating under the figure of Legacy Interconnection Contracts (CILs). Under this scheme there is no minimum demand, tough normally it is applied for facilities in medium or high voltage and demands above 100 kW per facility.

In general terms, it is economically convenient to buy power from a third party when the sum of the mean demands of all the facilities is equal or greater than 1,500 kW. Send us your most recent electricity bill to advise you on what is the most convenient for your company.

Do I have to register as a Qualified User?

Check if your facility:

1) Does not have or have had a contract with CFE hired before August 11th 2014 (your facility started operating after that) 2) Has consumed a maximum demand of at least 1,000 kW.

If these two statements are true for your facility, there is an obligation to register as a Qualified User. In any other case there is not such obligation, nevertheless there is the option of registering voluntarily is the second statement is fulfilled.

Even if your company has a facility obliged to register as a Qualified User, do not rush into a decision, CRE can grant extensions for the period of registration, which can give you time to better evaluate your options. Get in touch with us to assess your company on its options, confirm if you really have the obligation, carry out the procedures before CRE and get the best offer for your power supply.

Am I having the same attention in case of black-outs?

Under both the schemes of Qualified Supply and Self Supply the responsibility of the service reestablishment relies on CFE Distribution and CFE Transmission. Law obliges these figures to carry out this service regardless of the power supplier for the facilities.

In case of black-out you will have to notify your supplier for it to follow up the event with CFE Distribution and/or CFE Transmission until the power is reestablished with the same attention as always.

What will happen with CFE tariffs?

Basic Supply Regulated Tariffs (currently CFE tariffs) will no longer be calculated as they are now. CRE will define a new formula for each tariff substituting the existing tariffs and the Basic Supplier (currently CFE) will apply those to end users. The intention of these tariffs is to reflect all the costs of supply and to make Basic Supply profitable. Every end user that has not negotiated a PPA with a third party will be subject to these tariffs.

What are CELs? Am I obliged to get them?

Clean Energy Certificates (CELs) are instruments sponsored by the Federal Government to stimulate power generation through sources considered as clean. All the suppliers are obliged to have a certain percentage of the power they supply (5% for 2018. 5.8% for 2019, 7.4% for 2020, 10.9% for 2021 and 13.9% for 2022) coming from clean sources or to buy their equivalent in CELs (1 CEL = 1 clean MWh).

The one obliged to acquire CELs and subject to penalties in case of noncompliance, is the supplier. A properly negotiated PPA such obligations and penalties should not be transferred to the end user. Get in touch to assess your company on the critical points to watch in a PPA to avoid the transference of these very costly obligations.

What is MEM?

In general terms, the Wholesale Electricity Market (MEM) is where generators and suppliers sell and buy power. In MEM the power price is settled according to supply and demand, which is why it varies from day to day and from hour to hour. This does not mean that the price that end users will pay will vary in the same manner since end user can freely negotiate a PPA with a supplier who offers a tariff suited to its interests.

Even if end users are not obliged to participate in MEM, it is necessary for them to have a good notion of its functioning, since the offers they will get from suppliers will be affected by the prices in MEM. Contact us to be advised on the best offers from the suppliers, relying on our up-to-date analyses of MEM operation.

Is it better to invest in Energy Audits or getting a new electricity supplier?

One option does not interfere with the other. On one side, Energy Audits have the purpose of making the company processes more efficient in terms of energy consumption, thus generating economic savings by reducing consumption. On the other side, getting a new power supplier does not affect the amount of energy consumed, but it generates economic savings by getting a better price for the same consumption.

When implementing a joint strategy it is very important to make sure both approaches are perfectly compatible to obtain considerable savings. At EPSCON we have strategic partners specialized in Energy Audits, making it possible for us to offer a custom made joint strategy so that you company can generate large savings.

Is it convenient to install solar panels in my company?

From a strictly economical point of view, to this date solar panels are not a convenient option for companies. Given the current regulated tariffs, the options for supply available in the market and the large investments required by photovoltaic facilities, this option does not offer competitive economic benefits compared with many other options.

To this date, solar panels are profitable for high consumption residential, nevertheless in the medium term it is possible that they could offer something interesting for some kinds of companies.

More questions?

Get in touch to schedule a meeting, answer your company’s specific questions and build a power procurement strategy that maximizes your savings.