Having been a morning person from kindergarten through my last employ, I'm no longer a morning person. I'm retired. I do eventually get up around 7AM and stumble my way to the coffee pot where I'll find fresh coffee and a love note telling me everything is under control and "Oh by the way here are the water and electricity meter readings". I do so love that woman. I'm not terribly concerned about the water meter but the price of electricity dictates we pay close attention to our usage.
CFE is the national electric company in Mexico - their rates are high and their billing takes some getting used to. They have divided the country into seven zones based on utilization rates. Within each zone customers are charged increasing rates as they use more energy. Finally, the rates change twice per year with the seasons - summer and winter, again driven by utilization. If a customer stays below certain predetermined levels of usage, the Government will subsidize a large portion of the actual cost of production. On the other hand, if a customer exceeds a certain cap (each zone being different) during a consecutive two-month period they are charged "full freight" for the following twelve months regardless of their actual usage. That's the DAC or High Consumer Rate that varies slightly from month to month. So far this year the DAC rate has ranged across the country from a low of $3.535 pesos to a high of $4.935 pesos per kWh.
An example might help explain. We are in Tariff Zone 1C which includes most of the Yucatan Peninsula. In Zone 1C the following rates apply during the summer
0-150 kWh $0.697 (US$0.04)
151-300 kWh $0.822 (US$0.05)
301-450 kWh $1.050 (US$0.06)
451 and above $2.802 (US$0.16)
So if one used, for example, 875 kWh of electricity during the month the charges would be
150 x $0.697 = $ 104.55
150 x $0.822 = $ 123.30
150 x $1.050 = $ 157.50
425 x $2.802 = $1,190.85
Now the Government reports that the cost of production for these 875 kWh is $3,645.34 of which $2,069.14 was subsidized.
That's just the juice, now the taxes...
IVA (the country-wide value added tax) of 16% $252.19
and DAP* (Public Lighting) of 5% $ 78.81
Add that to the charge for electricity used ($1,576.20) as calculated above and the total bill is $1,907.20 or about US$109 dollars at 17.5:1 exchange rate. For an average overall cost of MX$2.18pesos/kWh (US$0.12/kWh)
There are more hidden details but that's the gist of how it works here.
*Only in states that have agreement with CFE is the DAP charged on the bill.