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Total EDE losses remain high

The cumulative total losses until May of the electricity distribution companies (Ede) reached 41.1%, which means that for every 100 pesos of energy purchased the Ede lost 41 pesos, according to the data of the latest performance report prepared by the Ministry of Energy and Mines.

The 41.1% losses It is divided into energy purchased but not billed, which represented 30.5%, and energy billed but not charged, which represented 10.6% of the total purchased.

The result for May indicates that the accumulated losses have increased since March, when they represented 37.5%.

In January of that year the total energy losses they reached 43.3%, the result of 27.9% energy losses and 15.4% energy not charged.

The total energy losses of the distributors were the following in recent years: 2017, 33.7%; 2018, 32.7%; 2019, 30.5%; 2020, 38.7% and 2021, 37.5 percent.

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The years in which energy losses reached the highest percentages were 2020 and 2021, with 33.1% and 32.6%, respectively.

The energy losses of the distributors are paid by the citizens with their taxes, says the Regional Center for Sustainable Economic Strategies (CREES).

For 2022, the electricity subsidy was budgeted at US$942.8 million, which represented 30.5% of the fiscal deficit.

The increase in losses, together with the increase in the international prices of oil, natural gas and coal, should increase the amount of the current subsidy to the Ede in 2022, he points out.

He considers that keeping the distribution of electricity in the political sphere prevents the creation of incentives for the EDEs to be able to operate without demanding subsidies. With changes in the management and ownership of the distributors, and the reduction of subsidies until their complete elimination, the EDEs would be efficient, he argues.

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