6. How the CFE Tariffs are calculated (We’ve got your back)

The final tariffs rate of basic supply TFSB (Tarifas Finales del Suministro Basico) are made up of the costs of services to generate, transport, distribute and supply electricity to end users (households, business and industry). They are classified according to the characteristics of consumption, voltage level and type of measurement (tariff categories) and by regions (rate divisions). In this way, energy consumers who choose to remain in the Basic Supply or whose demand is less than one MW, they are subject to the TFSB that are determined monthly:

Where:
i – is one of the 17 divisions
j – is one of the 12 tariffs
m – is respective month​​​​​​​
T – Transmission costs for the energy transfer from power plant to the distribution network (High Voltage) [Acuerdo A/045/2015]
D – Distribution costs for distribution of energy from grid to end users (Medium Voltage) [Acuerdo A/074/2015]​​​​​​​
Cen – CENACE operation cost [Acuerdos A/075/2015, A/057/2016, A/001/2017, A/068/2017, A/004/2018, A/023/2018)​​​​​​​
OSSB – Supplier operation tariff [Acuerdo A/058/2017]​​​​​​​
SCnMEM – connection fee not included in Wholesale Energy Market - MEM (Mercado Electrico Mayorista) ​​​​​​​
G – generation costs for division I, tariff j, and month m [A/058/2017]​​​​​​​
E – energy cost in division I, tariff j and month m ​​​​​​​
C – capacity cost in division I, tariff j and month m