Mexico's congress should consider the privatization of power distribution both to free up resources for state power company CFE and to provide lower consumer power rates, Gustavo Dominguez, the director of electrical manufacturing industry trade association NEMA Mexico, told BNamericas.
Transmission and distribution in Mexico's grid (SEN) is controlled exclusively by CFE. The distribution network is made up of 48,941km of sub-transmission lines and 648,765km of distribution lines, according to the company's website.
Though privatizing distribution would not be politically feasible at this time, Dominguez said lawmakers should begin the "large technical and political discussion" while, in the meantime, CFE goes about adopting smart grid technologies.
CFE could also ultimately withhold strategic areas for exclusively public distribution, while opening the sector elsewhere to private firms.
"It is something that should be done in the short term," Dominguez said.
Source: www.bnamericas.com
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