electric subsidy to end in mexico

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Friday, November 1, 2013

Labels: bisbee black and blue, martha mcnabb

Martha McNabb Takes 2nd at the 2013 BisbeeBlack and BlueOnce again our own Martha McNabb showed the boys how to fish, taking 2ndoverall with a 525 lb Blue at the Bisbee and winning the most prize money. In fact itwas ladies day on the podium as Linda Williams took first place with a 774 lb Blue,the largest ever boated by a female angler in the B&B. Read more here on theBisbee web site.

Congratulations Martha and crew!!

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Monday, September 23, 2013

Mexico's Electric Subsidies

The Latest News...Updated August 8, 2013 Good news! ThePresident of Mexico, Pea Nieto hasdecided that the temporary electricalsubsidy will stay, for now. The sliding scalewill most benefit the poor, as the most

Article taken from "The Baja Insider"

Mexico's Residential Electric Subsidies - Lookslike they will stay

The people of Mexico have enjoyed avariety of subsidies including gasolineand electricity. The World Bank andsome Mexican legislators say thesubsidy promotes waste and is tooexpensive for the state.In Mexico there has been for decades, avery juicy subsidy to residential electrical

bills and to industrial high volumeusers. Over the past decade thecost of this subsidy to the Mexicanfederal government has beengrowing at a significant rate. But bylaw, written into the legislationestablishing any subsidy in Mexico

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electricity you use, the smaller the subsidybenefit.The Baja California Sur customer willcontinue to save 17% to 43% of theirelectric bill through this subsidy.North Americans use an average 10 timesmore electricity per citizen than doMexicans, in a large part to the relativecost of electricity in Mexico and loweraverage income levels.

is the important word 'temporary'.Now, there is legislative move afootto reform or remove the currentsubsidy scheduleIn 2009 the World Bank released awhite paper recommending thatMexico's residential electricsubsidies be entirely scrapped. In2009 the average U.S. customerwas paying $0.096 per kW/hr andthe average Mexican customer was

paying $0.090 per kW/hr, both enjoying some of the cheapest electricity in theworld. Removal of the subsidies would rocket Mexico to the other end of the costscale, with countries like Japan and Germany, which paid close to $0.20 per kW/hr.(Note: This is not the electric rate; it is the price the average residential customerpaid in these countries, including subsidies, supports & including the HVD inMexico) The vast majority of electricity in Mexico is generated by diesel thermo-electric plants and the cost of the fuel has risen more than 75% in the 7 year periodpreceding the study. Fuel costs risen even further since 2009. Nearly all of theelectricity on the peninsula is generated by this method and demand for electricityhas risen even more sharply here, as the 'Gringo Invasion' has resulted in adramatic increase in demand; to power air conditioners and our more consumptiveculture. This, of course, is in addition to the explosive growth of the peninsula withinthe Mexican community and the growth of the middle class, who also desire tosleep in air conditioned comfort.

The World Bank recommended improvements in the efficiency of CFE, the nationalpower company and a LPE, the Mexico City electricity provider. Theyrecommended modernization of the infrastructure and business management of thesystem to result in a 20% cost per delivered Kw/hr. But with a double edged sword,the side that cuts the consumer was the removal of all subsidies.In an attempt to make a silk purse of a sow's ear they stated that electricity was 'toocheap' in Mexico, promoting waste, and not stimulating the use of more expensivebut energy saving technology. That this over use was adding to environmentalabuse and climate change. Raising the cost of electricity would promote greaterconservation. However, it is important to remember that if your yearly incomecontains less than 10 decimal places to the left, the World Bank is probably not onyour side, despite their "Madison Avenue" tag line.

Why is this happeningnow?For several decadesMexico has enjoyed cheapenergy and brought insignificant national incomefrom petroleum, whichsupported generous socialprograms which in turnhave brought strong growth

to the Mexican economy. Income taxes are less than 1/2 that of the U.S. for amajority of the working class.Subsidies have supported fuel prices, electricity, and health and infrastructureexpansion. These investments are paying off, this year Mexico is expected to have2 to 3 times the economic growth of the United States, which has a different ideaas to where to spend money.Those oil riches are coming to an end. In the next few years Mexico will pass frombeing an oil exporting country to an oil importer. Mexico is beginning to tighten thebelt before they run out of rope.

By then end of the decade Mexico will also enter the exclusive club of being one ofthe ten most powerful economies on the planet. It is unclear whether removingsubsidies will accellerate or delay this progress. Just that much more of the burdenof progress will shift to the poor can not be debated.What would be the impact on the economy in Mexico?

No party to this plan denies that removing the subsidieswould most dramatically impact the poor. Nor does anyparty to this plan deny that it would curtail use -masquerading as conservation. Everyone also agreesthat the 20% cost savings would be a wonderful thing, butthe electrical workers are a strong force, and unlikely togive up wages or the juicy and wasteful perk of freeelectricity for employees. Management rarely gives upanything. Savings would most likely come from an up-front investment to make the system more efficient.Who would be forced to give up something, would beevery economic level of consumer below the mid-line. A

local newspaper suggests that if you are paying $500 pesos ($40USD) per monthnow your Baja power bill would jump to $1800 pesos ($141USD) with the removal

Labels: baja electrical subsidies, Mexico's electric subsidies

of the subsidy. (when calculating your price increase it is not linear, the subsidydecreases with usage, until you reach the 'high volume user' category)In an economy where the growing middle class has become accustom to airconditioning, 56 inch TV's and electric blenders, there would be a significantnumber on the fringe of each of these 'luxuries' that would have to give them up.This would result in a drop in sales of these products and a further reduction in VATtax revenue to the Federal government. Not to mention the increase in hot, sweaty,sleepless and disgruntled Mexicans, who felt their path forward being obstructed.With the removal of the fuel subsidies already in progress and this proposedelectric rate increase it will be a lot for some economic strata to absorb.What does it mean for Baja?

If you were to turn off the electricity La Pazwould likely dry up and return to a dustylittle frontier pueblo with no industry and ahandful of wealth oriented, self-poweredtourists enclaves. Although no one is likelyto throw the switch on the state just yet,politicians are already vocal about thedamage this subsidy change could mean topeople of our state. The broad picture ispainted as the impact on the poor, to which

the mere use of electricity would become a luxury. When a decent working classjob for a Mexican in La Paz brings in $300 to $600USD per month, a big price jumpin electricity will take a huge bite from personal spending power.For North Americans living in most parts of Baja California Sur the air conditioningcomes on in the afternoons in April and is running full time from June to October.My air conditioning system usually gets shut down for the year about midNovember. For me and many others, air conditioning is an essential forsurviving/enjoying life in our region through the summer months.Water is another life giving essential, which is becoming increasingly dependent onelectricity. Production of water through current desalinization techniques is veryenergy consumptive, as any cruiser will tell you. With every Baja Sur municipalitynow using desalinated drinking water within their jurisdiction, water prices will risetoo.In Baja California Sur most of our electricity currently comes from dieselgeneration. (although another 800mW solar plant is in the works) Anyone with aneye to the future knows that our electric rates are destine to climb steadily aspetroleum prices rise, but the subsidy removal would create a much larger singlejump in the immediate future.With the majority of North Americans investing in Mexico to retire on fixed incomes,the increased cost of electricity and our Gringo consumptive needs, the costsavings of moving to Mexico would be significantly lessened.The real estate market in Baja has endured these past few years, subsisting mostlyon sales to Mexican nationals, where home financing has actually become easier inmany respects. Some real estate projects have failed, while others hang on by theirfingernails, awaiting a new wave of North American buyers to which their product isgeared.With travel prices increasing; with appliances, electronics and groceries costingmore than most U.S. locations and now fuel prices approaching equivalency,removing additional cost advantages to North American retirees will not benefitsouthbound investment. With the bulk of the expatriates choosing the states of BajaCalifornia and Baja California Sur to make home, part or full time, this may have adramatic regional impact.


Thursday, April 25, 2013

Meet the Jack QueenBonnie Herter is now officially the Jack Queen.

Labels: bonnie herter, meet the jack queen

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Nice Fish Bonnie!


Wednesday, February 20, 2013

Labels: 5k run, roadrunner cafe 5k

1st Annual Roadrunner Cafe 5k Run


Thursday, February 14, 2013

Second Annual Los Barriles Mardi Gras Parade

Labels: 2013, los barriles, mardi gras parade

First let me confess: I was in La Paz all day and missed the parade. Fortunately, Ihave some photos from my friend June and found a great video on YouTube byBernadette. So if you missed it like I did, here you go.

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Go Pro View of Los Barriles Mardigras Para


Thursday, January 31, 2013

Roadrunner 5k Beach Bash

Road Runner Cafe Beach Bash 5K/1K is March 23, 2013. There are twocategories: shoed and barefoot. The race start is at Buena Vista Public Beach

Labels: 5k run, bcs, los barriles, los cabos, March 2013, mexico, Roadrunner beach bash,roadrunner cafe, tshirt

Park. The course for the 5K will follow the beach to the turn arround at the CostaBrava road entrance to the beach. Proceeds go to help students pay for highschool education. There are many age group divisions, many prizes. If youregister by Feb. 15th. you are guaranteed a T-shirt. Pre register at Road RunnerCafe. We encourage children 12 & under to run in the beach 1K. Entry fee for5K: 100 pesos for 1K 20 pesos. Join me in our first informal training run at CostaBrava Road beach entrance on Thurs. Jan. 31st. at 8am. RSVP for training run: Bonnie [email protected]


Tuesday, December 25, 2012

Our Friends Who Moved to Los Barriles

Our friends Larry and Cheri havefinally retired and moved into theirhouse in Buena Vista. We dove upand accompanied them down thehighway since it was their first time.They are thrilled to be here and havewasted no time getting involved inthe community. Larry sings at theopen mic at Roadrunner and haslanded a part in the upcomingShakespeare play.

Cheri is an artist and an art therapist.She quickly found willing art subjectsin our cute little burros. I love her artand here are a few drawings sheshared with me.

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Labels: art, art therapist, burros, larry and cheri, los barriles


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