Our analysis evaluates tariff structures, demand charge management, power factor penalties, and contract term considerations. For qualified facilities, we assess supplier market conditions, evaluate proposals against CFE benchmark rates, and support negotiations for favorable commercial terms.
Book Assessment CallNavigating Mexico's Energy Market
CFE Tariff Structures & Optimization
We analyze the complex CFE tariff regimes (e.g., OM, HM, HTM) applicable to your facility and identify opportunities for cost reduction through load shifting, peak demand management, and reactive power compensation strategies. Understanding seasonal rate variations and their impact is key.
Mercado Eléctrico Mayorista (MEM) Explained
The MEM is Mexico's wholesale electricity market, enabling large consumers to purchase power directly from generators or qualified suppliers. We demystify its structure, price formation mechanisms, and how participation can lead to significant savings for eligible facilities.
Qualified Supplier (Suministrador Calificado)
For facilities transitioning to the MEM, selecting the right qualified supplier is critical. We define requirements, evaluate supplier credibility, service offerings, and financial stability, providing a reliable and competitive energy partner.
Virtual Energy Manager
Ongoing monitoring and advisory retainer providing continuous oversight of energy performance, anomaly detection, and strategic guidance without requiring dedicated internal resources.
Strategic Procurement & Risk Mitigation
Contract Structures & Terms
Procurement contracts vary widely in length, pricing mechanisms (fixed, variable, indexed), and terms. We provide expert review and negotiation support, focusing on transparency, flexibility, and clauses protecting your interests.
Risk Management in Energy Procurement
Energy markets are volatile. Our strategies include diversifying suppliers, hedging options, and incorporating risk mitigation clauses in contracts to protect against price spikes, supply interruptions, and regulatory changes.
Why Choose MEP for Procurement Advisory?
Facilities choose MEP for our deep understanding of the Mexican energy market, our independent advice free from supplier bias, and our proven track record of delivering substantial savings. Typical savings for facilities moving to the MEM can range from 15% to 30% depending on load profile, facility type, and tariff structure.
Book Assessment Call
Services
CFE Tariff Analysis
Review of current tariff assignment, demand profile analysis, identification of alternative tariff structures that may reduce costs. Includes power factor correction feasibility where penalties apply.
Qualified Supplier RFP
For facilities meeting qualified user thresholds, we develop RFP specifications, evaluate supplier responses, and benchmark pricing against CFE rates and market indices. We maintain strict supplier independence.
Contract Review & Negotiation
Independent review of energy supply agreements identifying unfavorable terms, price adjustment mechanisms, early termination provisions, and force majeure clauses. We support commercial negotiation without legal advisory.
Market Monitoring
Ongoing visibility into qualified supplier market conditions, wholesale price trends, and regulatory developments affecting procurement strategy. Quarterly briefings available under retainer agreements.
Energy Procurement Process Overview
How We Work With Clients
Initial Assessment Call
30-45 minute discovery conversation covering facility characteristics, current energy management approach, key priorities, and decision-making process. We identify whether our services align with your needs.
Data Review & Scoping
Analyze 12–36 months of historical energy consumption (kWh, demand, load profile). Identify sites, meters, and critical loads. Define renewable energy target (percentage or MWh per year). Align with corporate goals: cost savings, price certainty, CO₂ reduction, ESG targets. Confirm regulatory and market eligibility (onsite PPA, offsite PPA, VPPA, retail supply).
Procurement Strategy Structuring
Select procurement model: Onsite or offsite physical PPA Virtual PPA (VPPA) Renewable retail supply with certificates Define contract term (typically 10–20 years). Determine pricing structure (fixed, indexed, escalator). Specify certificate requirements (RECs, I-RECs, Guarantees of Origin). Allocate risks (volume, price, congestion, curtailment).
RFP Issuance to Qualified Suppliers
Pre-qualify renewable developers and energy suppliers. Issue a formal RFP including. Manage Q&A process and data room access. Set a clear submission timeline. Compare pricing ($/MWh) and savings versus current tariffs. Evaluate generation profile versus load profile. Assess legal, regulatory, and counterparty credit risk. Review contract flexibility, guarantees, and penalties. Quantify CO₂ reduction and ESG impact.
Implementation Support
Select the best total value solution—not just lowest price. Compare pricing ($/MWh) and savings versus current tariffs. Evaluate generation profile versus load profile. Assess legal, regulatory, and counterparty credit risk. Review contract flexibility, guarantees, and penalties. Quantify CO₂ reduction and ESG impact. Negotiate key commercial and risk terms. Perform legal review of PPA or supply agreement. Execute the contract.
Impact at a Glance
Proven results for a typical industrial client
Annual GWh Reduced
USD Monthly Savings
tCO₂e Avoided
Sites Optimized
What You Receive
Clients receive clear financial outcomes, defensible ESG metrics, and fully negotiated renewable energy contracts.
- Executive Energy & Cost Impact Report
- Competitive Supplier Bid Comparison & Recommendation
- Carbon Reduction & ESG Impact Assessment
- Negotiated Contract Package (PPA / Supply Agreement)
- Ongoing Performance Monitoring & Reporting Framework