Consumption Optimization and Cost Reduction in the Northwest

Many supply contracts include flexibility mechanisms that, used well, are a lever for savings and, managed poorly, become a silent source of overcosts. The difference between the two scenarios rarely lies in the contract itself: it lies in the discipline with which it is managed month after month within the Mexican Wholesale Electricity Market.

A client located in Northwest Mexico has an energy supply contract that allows for monthly adjustments in consumption volumes or, alternatively, adherence to the projections stipulated in the contract. The contract also establishes a tolerance band of ±3% relative to projected consumption.

As strategic advisors, Enerlogix designed a strategy based on these contractual conditions and the tolerance band, aiming to optimize consumption management and maximize savings derived from this flexibility. Through precise adjustments in monthly nominations, we significantly reduced costs associated with energy consumption deviations.

The fine work consisted of keeping consumption within the ±3% band through calibrated monthly adjustments, turning a clause that many manage passively into an active instrument for cost control. Each monthly nomination was treated as a decision with an associated cost, not as a routine formality.

Had this strategy not been implemented, the client would have incurred a cost of MX$6,376,020 due to deviations. Thanks to our action plan, the final amount for this item was MX$4,405,757, representing a significant reduction in deviation costs.

Additionally, as a result of our comprehensive advisory services and the implementation of efficient strategies, the client has achieved average savings of 21% compared to the cost of CFE's Basic Supply. This case shows that contractual flexibility only pays off when actively managed; operations that have a tolerance band in their contract but manage it passively have a clear opportunity here to cut their deviation costs.