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Consumers reject CFE ‘smart card’

Mexico’s electric utility, the Comision Federal de Electricidad (CFE), has been swamped with complaints over its new prepago “smart card” payment system.

Since September of last year the CFE has distributed 270,000 of the cards throughout Mexico, 98,000 of them in the metropolitan area of Guadalajara. The cards can only be used by consumers who have new “digital electric meters” installed on their properties. 

The system eliminates paper receipts and allows consumers to pre-pay for their power, rather like topping up a cellphone. Or if they prefer, consumers can use their cards to read the meters and choose which day of the month to pay their bill.

The CFE advises those using the card top-up system to check their meters regularly to see how much electricity remains. To put more credit on their cards they must go to a CFE outlet, something that is not possible on weekends or holidays.  

The other method involves consumers predetermining whether to pay on the 1st 5th, 10th, 15th, 20th or 25th of each month.  Prior to payment they place cards on the digital meter and the amount of electricity consumed is “read” and stored.  Payments must be made within ten days once the card has been read. Once payment is done, the card must be placed again on the meter to avoid suspension of service.

In recent weeks the CFE has been forced to handle numerous complaints about the payment system and employees of IUSA, the subcontractor hired to implement the system.   The number of complaints has swelled to more than 11,000 and 1,500 cards have been returned in Jalisco alone.

The CFE stresses that installing a digital meter and getting a card has no cost but many homeowners say that some door-to-door IUSA sales persons have fed them sketchy details about the payment method and even told them they must subscribe to the new system or face financial penalties.  Many signed up to the new payment system without knowing how it worked and report having had their power cut off at inconvenient times.

At least ten IUSA employees have been fired this year for dubious practices, the company has admitted.  The salespersons are paid well for signing up customers, several Spanish-language newspaper reports suggest.

Others who switched to the new system say they are being over-charged for their electricity usage, hinting that the digital meters are giving higher consumption readings than the old ones.

Humberto Atilano Flores, CFE’s Jalisco press spokesperson, has tried to answer the barrage of criticism, saying switching to the prepago system is voluntary, and that the tariffs are exactly the same as with the regular payment method. He says deactivation can be made at any time but with an administration fee of 368 pesos.

Over time, the CFE hopes to replace all its outdated meters and has ordered six million digital units from Industrias Unidas, a provider that it has worked with for 65 years.

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