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By KELIN DILLON

According to data compiled from Mexico’s state-owned energy company the Federal Electricity Commission (CFE) and the Mexican Secretariat of Energy, the average duration of power cuts in the nation has increased more than sixfold since Mexican President Andrés Manuel López Obrador (AMLO) assumed presidential office in 2018.

While the average duration of a power cut once sat at two minutes in 2018, the average duration of said energy cuts has since skyrocketed to 13.5 minutes as of 2023’s third quarter. 

These lengthened blackout durations subsequently trickle down to negatively impact Mexico’s business operations and their production output, said Citibanamex Economic Studies Director Iván Arias.

“At some point, this can lead to pressures on prices,” said Arias.

Arias went on to say that the Mexican grid’s supply struggles could present major concerns to companies arriving in the nation for nearshoring.