Surging Mexican Power Demand Outpaces Cheaper Gas Prices

According to BNamericas, record Mexican power demand offset cheaper gas prices in July. This unexpected trend led to an increase in electricity generation costs.

The Transmission System Operator reported that the surge in demand was higher than expected, despite lower natural gas prices. As a result, the average wholesale price of electricity rose by 4.2% in July compared to the previous month.

Experts attribute this anomaly to various factors, including an unexpected increase in industrial and commercial activity during the summer months. Additionally, a heatwave in Mexico led to increased air conditioning usage, further straining power supplies.