The CFE shields its finances due to international volatility

Cancún, QR., The director of finance of the Federal Electricity Commission (CFE), Eugenio Amador Quijano, assured that the company faces a volatile international environment with a strategy focused on risk coverage, discipline in debt and an expansion of investments that seeks to guarantee electrical sufficiency without transferring pressures to users.

In an interview, held during the 89th Banking Convention, the official explained that one of the main risks for the company is the fluctuation in fuel prices, which have risen in recent weeks, particularly natural gas, a key input for electricity generation.

“We always have to be prudent… one of the constant risks is fuel (prices), which are quoted in international markets,” he said.

To mitigate these impacts, the CFE maintains a coverage policy for at least 60 percent of its fuel costs. Even, he detailed, since last year they took advantage of low prices in order to ensure conditions that cushion volatility.

“We took coverage that today is helping us manage that risk… and we are looking to extend them beyond 2027.”

Amador Quijano maintained that, despite the environment, the company closed 2025 with the best financial results in its history, supported by an investment strategy in new plants and more efficient technologies.

“It is the result of a company that is prudent regarding debt, but that invests… and these new plants allow us to reduce costs and replace more expensive technologies,” he noted. As part of this strategy, the CFE contemplates an investment plan for 30 billion dollars over six years, focused on the entire value chain: generation, transmission and distribution.

The project includes the incorporation of nearly 12 thousand additional megawatts of capacity, of which 75 percent will correspond to renewable energies, under formats that combine public and private investment.

“The scheme is to partner with the private sector… we provide long-term contracts and that gives bankability to the projects.”

In these models, the CFE will maintain at least 54 percent participation, in line with the State’s legal mandate on electricity generation, while the rest can be covered by investors.

According to the manager, the interest of the private sector has been high, to the point of exceeding several times the capacity sought to be hired in these initial phases.

CFE also promotes investments in transmission for around 8.5 billion dollars, key to addressing regional bottlenecks and accompanying the growth of demand.

Part of these resources will come from instruments such as Fibra E, which allows future income from the electrical network to be monetized without increasing debt.

“We seek to diversify financing sources without putting the credibility of the company at risk,” he stated.

Regarding the impact on users, Amador Quijano stressed that the CFE’s policy is to prevent international volatility from translating into abrupt increases in rates.

“The company will take care that rates do not rise above inflation… we have mechanisms to soften these impacts,” he said.

Even in stress scenarios, such as the one recorded in 2021 with the polar vortex in Texas – which shot up gas prices by up to 400 percent – ​​the company absorbed the costs so as not to immediately pass them on to consumers.

The manager stated that the CFE is preparing to cover the growth in electricity demand, estimated at around 2.5 percent annually, as well as the peaks associated with events and economic expansion. “We are investing to ensure there is sufficient infrastructure… and remain a financially healthy company.”