Mexico’s CFE financial woes continue

Mexico’s state-owned power company CFE (Comision Federal de Electricidad), has recently reported net losses of up to $2.8bn in the first half of 2013, as operating costs climbed, reports BNAmericas.

According to El Financiero, the latest figure is almost triple the losses CFE suffered during the first six months of 2012, when they were in the region of $1.bn.

In the quarterly report supplied to the Mexican Stock Exchange (BMV, CFE attributed the higher operating costs to more reliance on fossil fuel-based generation.

According to BNAmericas, in the first half of the year, the firm reduced hydro output – 7.76 TWh compared to 16 TWh a year ago – as part of it efforts to return dams to normal water levels, which are still low since the 2012 drought, so resorted to more thermal generation to meet demand.

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