# CFE Rates - Simplified Explanation



## AlanMexicali (Jun 1, 2011)

"When we first moved to Mexico, I was surprised that so many of our fellow expats were obsessed with how much electricity they used. Many of them even told us that they won’t turn on their air conditioners because electricity is so expensive.

I really didn’t understand what all the fuss was about because I didn’t think my electric bill was that high – at least at first. After a short time in our new condo, our bimonthly electric bill increased dramatically from one billing cycle to the next. Naturally, I thought it was some kind of accounting error because our usage had not increased.

After a bit of investigation, I learned that the electric company, Comisión Federal de Electricidad (CFE), had reclassified us as a high consumption household based on our usage the previous months. This classification is known as DAC (doméstica de alto consumo).

Once we reached that level, we were billed at a much higher rate per kilowatt hour. When I say higher – I mean a lot higher.

Prior to the change, our first 250 kilowatt hours (kWh) of electricity were billed at $0.711 pesos per kWh. After the change, we were charged $3.436 per kWh. That’s an increase of over 380% — ouch!

To make matters worse, they also tack on an additional charge of $183.54 pesos ($9.17 USD) to every bill if you are rated as a high consumption household.

Subsidies

The government provides a subsidy to help cover the cost of electricity, but you can only get it if you keep your usage within the limits set by CFE. We were getting those subsidies when we first arrived and that saved us quite a bit of money.

The subsidy is based on a tier system and it affects the rate that you pay per kilowatt hour.

Take a look at the picture below. This was taken from a bill that we received when we were still receiving the government subsidy.



The first 250 kWh (básico) was billed at $.0711 pesos per kWh. The next 200 kWh (intermedio) was billed at a slightly higher rate of $.0839 pesos per kWh. Anything above that level (excedente) was billed at a much higher rate of $2.859 pesos per kWh.

This is only an example. The individual rates will vary by assigned billing zone and time of year. Once you know your billing designation (next section), you’ll be able to find the exact rates on the CFE website.

Usage Limits

CFE determines your usage limits and rates based on the minimum average temperature for your area in the summer. The higher the average minimum temperature, the more electricity you can use before being losing your subsidy.

The following chart shows the minimum average summer temperature thresholds for each classification:



The chart below shows the kilowatt limits per classification. If the average bimonthly electricity usage exceeds the amount shown for the past 12 month period, you’ll lose your government subsidy and fall under DAC billing.


TARIFA LIMITE 
01 250 kWh/mes 
1A 300 kWh/mes 
1B 400 kWh/mes 
1C 850 kWh/mes 
1D 1,000 kWh/mes 
1E 2,000 kWh/mes 
1F 2,500 kWh/mes 



You can determine your billing category by looking at the section marked “tarifa” on your CFE bill.



Akumal is classified as 1B, which means we have to keep our bimonthly average below 800 kilowatt hours if we want to receive the subsidy. That’s difficult to do if you run your air conditioner on a regular basis.

If you’re already paying the higher DAC rates, then “DAC” will appear in that section of the bill. 

If that’s the case, you can always find out your billing classification by either calling CFE or asking one of your neighbors to check his or her bill.

Once you are on DAC billing, every single kilowatt hour is billed at the same high rate. CFE will also tack on fixed fee (cargo fijo).



You can get off DAC by consistently reducing your usage below the CFE allotted limit. Once your average for the previous 12 months is below the target number, you’ll start receiving your subsidy again."

Note. This is from an Expat´s uncopyrighted blog. The Jan. 1st. 2017 DAC rate in his climatic zone increased from $3.436 per kWh to $3.77 per kWh. I have read on other Expat webboards and other sources and TV video of the demonstrator and their plack cards on TV in Mexico are claiming CFE tarriffs rose on Jan. 1st anywhere for 20, 50 and even 120%. Actually the DAC rate went up 8%.


----------



## Gatos (Aug 16, 2016)

Nice write-up. I would like to add one or two additional points. If you rent and the CFE account is in the owner's name you will inherit the state of the account as the previous tenant left it. If they were energy hogs - you will pay the price. 

We have had a PV system for perhaps 2 years now. EVERY bimonthly bill has been for 50 pesos and we were watching our rolling 6 month Kwh credit balance increase. Last week's bill was still for the same 50 pesos but our credit balance did not grow. Perhaps it was due to all the holiday cooking my wife did recently - or perhaps something else changed there as well. There certainly has been an abundance of blue skys lately.

One last point - if you have those old fashioned meters with the dials you are lucky. The newer digital meters might raise your usage by 15 %.


----------



## perropedorro (Mar 19, 2016)

AlanMexicali said:


> TARIFA LIMITE
> 01 250 kWh/mes
> 1A 300 kWh/mes
> 1B 400 kWh/mes
> ...


Great info, Alan. I've seen this table before, but have never seen a list of the regions in each category, preferably on a map. Given that the lowest and highest differ by a factor of 10, It'd be illustrative how the zones are determined.


----------



## AlanMexicali (Jun 1, 2011)

perropedorro said:


> Great info, Alan. I've seen this table before, but have never seen a list of the regions in each category, preferably on a map. Given that the lowest and highest differ by a factor of 10, It'd be illustrative how the zones are determined.


Factor de Ajustes - CFE

"Donde: 
01 
Servicio doméstico [this tariff rate is for the majority of Mexico] 3000 KWHs subsidized in a 12 month period; beyond this consumption it goes into the DAC rate.

1A 
Servicio doméstico para localidades con temperatura media mínima en verano de 25 grados centígrados.

1B 
Servicio doméstico para localidades con temperatura media mínima en verano de 28 grados centígrados.

1C 
Servicio doméstico para localidades con temperatura media mínima en verano de 30 grados centígrados.

1D 
Servicio doméstico para localidades con temperatura media mínima en verano de 31 grados centígrados.

1E 
Servicio doméstico para localidades con temperatura media mínima en verano de 32 grados centígrados.

1F 
Servicio doméstico para localidades con temperatura media mínima en verano de 33 grados centígrados."


----------



## eastwind (Jun 18, 2016)

Very helpful thread, thanks for this. It got me to study my bill. I only moved in during september, and have only one full-period bill so far. Since it's a lot less than I was paying in the states I had just paid it without giving it any attention.

On my bill there's a half-circle graph like a speedometer showing breaks at 150, 350 and 1700. It took me a minute to figure out how that worked with the table posted in this thread: I finally found where it said Tarifa, and I'm in 1C, and the 850kWh/mes for 1C posted becomes 1700 for the 2 month bill period, I guess.

I used 738 without making any efforts to conserve, less than half the penalty level. I'm paying 0.793 for the first 150, 0.956 for the next 200, and 2.802 for the 388 on top of that. 

So I guess I'm in good shape, right?

Side note: I'm in a condo, and when I rented I got conflicting stories on whether the A/C was included in the rent. They told me both that it was and that it wasn't, I think. Or I was misunderstanding. I think it may be the case that there's a compressor on the roof and a fan in my unit, and the compressor may not be on my meter while the fan is, or something. 

Maybe someone can say that with usage of 738 I definitely am or am not paying for A/C, that would be good to know. Apart from A/C I only run lights, fridge, and a power-hungry computer. The hot water and clothes dryer use gas, but I had the A/C on 24/7 for the two months. It doesn't run a lot because the apartment shares ceilings & floors and one side wall with other units and I keep the blinds mostly pulled down.

The back of the bill has 2 years of billing history (the bill is in the name of a former tenant, I think). Fortunately, the bill has been below the penalty level for the whole two years.


----------



## TundraGreen (Jul 15, 2010)

eastwind said:


> Very helpful thread, thanks for this. It got me to study my bill. I only moved in during september, and have only one full-period bill so far. Since it's a lot less than I was paying in the states I had just paid it without giving it any attention.
> 
> On my bill there's a half-circle graph like a speedometer showing breaks at 150, 350 and 1700. It took me a minute to figure out how that worked with the table posted in this thread: I finally found where it said Tarifa, and I'm in 1C, and the 850kWh/mes for 1C posted becomes 1700 for the 2 month bill period, I guess.
> 
> ...


For comparison, I run a refrigerator, lights, a computer and modems, occasionally a fan for an hour to air out one room, once a week a clothes washing machine, and a trickle battery maintainer for a motorcycle battery. I have no kitchen toys that use power, the stove is gas, clothes drying is solar, as is hot water. Given that, my electricity bill averages about 150 KWh and $150 pesos every two months.


----------



## perropedorro (Mar 19, 2016)

The table was quite informative. We're in 1B. Now what I don't get is how the coast of Colima can be categorized as one of the _cooler_ climates in the Summer.


----------



## Gatos (Aug 16, 2016)

perropedorro said:


> The table was quite informative. We're in 1B. Now what I don't get is how the coast of Colima can be categorized as one of the _cooler_ climates in the Summer.


The thermometer was in the shade...


----------



## surabi (Jan 1, 2017)

It is also a really good idea to check your meter reading around the time CFE usually reads them and compare the numbers with those on your bill. Those meter readers can be lazy about getting out of their trucks, especially in the summer when it's raining. So they will sometimes "estimate" your bill. This has happened to me twice in 8 years. Except the estimate is supposed to be based on past usage, whereas mine were estimated at 10 times my normal. I brought my own reading into the office and they corrected it. And if they estimate too low, your next bill when they actually read the meter will be higher than normal, perhaps causing you to go into a higher rate. Once you pay a bill, they will not make adjustments, so you have to deal with their errors before you pay the bill.


----------

