Luz y Fuerza del Centro
Luz y Fuerza del Centro (LyFC) was a state-owned electricity company in Mexico that played a crucial role in supplying power to central parts of the country. Its origins date back to the early 20th century when the Mexican government sought to consolidate and nationalize electricity services to ensure efficient distribution and accessibility.
Before LyFC was officially created, Mexico’s electricity sector was managed by private companies, many of which were foreign-owned. These companies operated inefficiently, often prioritizing profits over service quality. In response, the Mexican government began taking control of electricity generation and distribution. This led to the establishment of LyFC in 1994 as a successor to the former Compañía de Luz y Fuerza Motriz del Centro.
Luz y Fuerza del Centro
History of Luz y Fuerza del Centro
The origins of Luz y Fuerza del Centro can be traced back to the late 19th century when electricity was first introduced in Mexico. The company evolved from various private and public electricity providers that emerged in the early 20th century.
Early Years (1880s – 1930s):
Electricity generation in Mexico began in the late 1800s, with private companies controlling most of the power sector. The Mexican Light and Power Company, a Canadian-British enterprise, was one of the dominant suppliers in the central region.
Nationalization and Creation of LyFC (1960):
In 1960, President Adolfo López Mateos nationalized the electricity industry, transferring control of electrical services to the state. This move aimed to ensure affordable and reliable energy for all Mexicans. LyFC was officially formed to manage electricity distribution in central Mexico, alongside the Comisión Federal de Electricidad (CFE), which handled power generation and distribution in the rest of the country.
Challenges and Financial Struggles (1990s – 2000s):
By the 1990s, LyFC faced significant operational inefficiencies, including outdated infrastructure, high energy losses, and growing financial deficits. The company struggled with a high percentage of technical and non-technical losses, including electricity theft and inefficient energy distribution.
Dissolution (2009):
On October 11, 2009, President Felipe Calderón’s administration announced the dissolution of Luz y Fuerza del Centro. The Mexican government argued that the company was no longer financially sustainable, as it required substantial federal subsidies to continue operating. The CFE took over electricity distribution in the central region, improving efficiency and reducing financial losses.