Get into the Wholesale Electricity Market with the help of a strategic ally
Businesses can significantly reduce the cost of their electricity consumption when they enter the Wholesale Electricity Market (WEM) with bilateral contracts that are more convenient for them, but there is still much ignorance and uncertainty about the path to take advantage of this opportunity.
The process of migrating to WEM with a new energy supplier is complex and can be confusing when we do not have a consultant experienced in this market. Luckily, at Enel, we are not only an energy supplier, we are the Energy Manager who accompanies you in the hiring process at each stage of the migration, from your registration as a qualified user to the design of personalized energy efficiency strategies for your business with a specific breakdown of costs, to each stage of the execution of your contract, making Enel an Integral Energy Manager in all services.
Today, we will answer your questions about four aspects that most often concern companies that want to start reaping the benefits of WEM.
1.- Costs
MEM allows you to obtain energy at more competitive prices, but this is not the only advantage that can be obtained. With Enel Energy like your Energy Manager, you will also get:
Predictability
Companies need to analyze their electrical consumption to anticipate variations, which allows them to reduce costs. However, Mexican companies previously had only one energy option with rates that could become volatile. Therefore, the costs in this area were so unpredictable that they impeded precise financial planning.
Currently, electricity costs in bilateral contracts continue to depend on various variable factors (installed capacity and demand, location of load centers, the type of consumption of the installations, contract terms, the Local Marginal Price (LMP), the electric power transmission network, etc.). Still, they are now completely transparent and can be drilled down so the client will be able to know exactly how much he or she is going to pay and what the concept is.
Energy efficiency
In addition to helping you get energy at a lower price, migrating to WEM with Enel allows you to guarantee proactive efficiency strategies and optimize your contract to the maximum in accordance with your operation's specific needs, reducing consumption and saving even more.
2.- Processes
Although the cost of energy tends to be the main factor why companies choose a new supplier, it is essential to understand that other factors must be taken into account in relation to advice and management throughout the entire process since leaving it in companies’ hands without the appropriate know-how can be risky.
Management of procedures and associated costs of entry to WEM
In order to start obtaining a more competitive electrical service, you will need to register with the CRE (Energy Regulatory Commission) as a Qualified User Registration (RUC), and to do so, you must meet certain consumption requirements, as well as carry out various processes that can take six to twelve months, such as pre-registration, user registration, registration of assets with the National Energy Control Center (CENACE), the formalization of a connection contract with the carrier, load modeling, etc.
Additionally, before starting to get power from a new distributor, companies need to make some adjustments to enable the appropriate equipment in their load centers, according to current regulations. For example, the installation of new current and power meters and transformers.
In Enel we offer you an integral service which allows you to reduce all the stress and delays that may arise in the migration, since we analyze if your company is a candidate to be a qualified user and then we take care of the management of all the formalities and procedures.
Custom contracts
There are not two equal companies and currently there are several ways to contract energy that can adapt to the needs of each business and that allows you to take advantage of the most competitive costs. In Enel we always seek to offer the best conditions to our clients, which is why we negotiate each contract individually and adapt costs and deadlines so you can obtain more benefits each time.
There are no cuts or interruptions in the electricity supply once you have hired us as your new supplier, the company will simply begin to receive your energy bill from Enel.
3.- Risk mitigation
Since there is no standard energy contract for deregulated supply, the best way to mitigate risks when migrating to WEM is to do it with an ally or consultant who knows the market perfectly and who always looks for the best interest for the client, according to the generation options in your area, your consumption demand, the size of the load, among others.
The two main risks for the client when signing a contract with a qualified supplier are accepting a fee that is too high or set a deadline that is too long that impedes adjustments. In Enel, we mitigate risks to the maximum, ensuring that the client understands in detail:
The breakdown of the total monthly rate (cost of energy, transmission, distribution, operation charges, secondary costs).
How much capacity, power and CELs (Clean Energy Certificates) are guaranteed.
The type of term that best suits your business.
Causes of termination and penalties for early termination.
The risks assumed by the supplier in the event of failure of the Power Plant or the fuel supply.
How a supplier of last resort support works.
How modifying agreements can be negotiated in case that the client's needs change.
In other words, we inform the client about all their options and the variables that influence them, so they can make the best decisions in each renovation.
4.- Sustainability
The Wholesale Electricity Market enables part of the electricity your company consumes to be generated through renewable energies or efficient energy transition technologies, which allows you to reduce your carbon footprint and obtain Clean Energy Certificates (CELs) without the need of increasing the cost of your supply. If a plant is considered as efficient cogeneration, it can generate CELs.
Energy traceability
The traceability of clean energy is an important factor to demonstrate that your company is working to achieve sustainable objectives, because it is what allows you to measure what percentage of the energy you consume comes from efficient cogeneration, as well as avoiding duplicate billings or claims.
In Enel, we have a wide range of efficient cogeneration options to further optimize your contract, depending on the geographical location of your load centers.
Enel: your best ally to get into WEM
We are the Energy Manager you are looking for because we have not only accompanied the Mexican Wholesale Electricity Market since its birth almost a decade ago, but we have extensive international experience in other energy markets and trends that have been operating successfully for a long time.
Our objective goes beyond being electricity suppliers: we create value and advise you so you can achieve the maximum possible energy efficiency. Our team of experts in energy, technology, cost projection, connection and sustainability is ready to face ambitious challenges related to different types of supply for multiple branches and loading centers, which require complex analysis and highly customized solutions.
Learn more about this and other energy topics at our blog or visit our website directly enel.mx/es where you can learn about our energy solutions. If you need more information or want to hire any of our services, contact us.
Sources:
Energy Regulatory Commission. Frequently asked questions about the new regulation on electrical issues. /https://www.cre.gob.mx/documento/faq-regulacion-electricos.pdf
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