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Hotels around Mexico prepare for massive CFE battle over tariff hikes

Cancun, Q.R. — Hotels around Mexico are preparing for a massive increase in electricity tariffs which they say in some cases, will reach 300 percent.

“We can no longer remain indifferent to the abuse of the authorities in energy matters,” said the national president of the Mexican Association of Motels and Hotels, Rafael García González.

In a press conference, the president of the association said that the energy reform, promoted by the administration of Enrique Peña Nieto, has affected the competitiveness of the sector.

García González mentioned that the hoteliers looked to the Energy Regulatory Commission, the company in charge of establishing energy quotas, to ask for clarification about the increase in rates, however, they did not receive a response.

He says that the Mexican Association of Motels and Hotels will ask the commission for patrimonial damage for hotels that have been affected.

Paloma Palacios, president of the Mexican Association of Motels and Hotels for Los Cabos, said that hotels from that state have obtained two orders to suspend payment of electricity.

“The suspension of payment does not mean to stop paying. One part is suspended, while the other is paid,” explained the representative, who added that they expect a suspension of payment of 60 percent of electricity rates.

Hotels around Mexico prepare for massive CFE battle over tariff hikes
Photo: La Asociación Mexicana de Hoteles y Moteles

“Los Cabos is one of the main destinations in the country that captures a large number of international visits with seven of every 10 travelers returning. What worries us is that the sector is affected,” he said.

“This situation could generate economic instability, since the hotel industry is one of the largest generators of jobs in the country,” he added.

The president of the Hotel Association of Cancun and Puerto Morelos, Roberto Citron, said that although the legal processes they plan to undertake will be carried out individually by each company, the union will remain united to face the problem.

He explained that the methodology used by the regulator to establish the rates applied by CFE have not been published in the country’s Official Gazette.

According to estimates, in 2018, the states most affected by the increase in rates are Quintana Roo with a rebound of 75 percent, Colima also by 75 percent followed by Baja California Sur with 70 percent, Mexico City with a growth of 27 percent and Tabasco with 41 percent.