REGULUS seeks to lead the market

Of the 152 participants operating in the Wholesale Electricity Market (MEM) in Mexico, according to data from the National Energy Control Center (CENACE), one stands out for its extensive knowledge of the sector, its 100% national origin and its ability to merge the energy business with the financial market: REGULUS Energía.

The company, led by Jorge Hernández, has a clear objective: to become the leading company in the MEM. “We are a dynamic player who participates in the Non-Supplier Marketer category. We are technicians, we were born part of the sector because my father, grandfather and great-grandfather have been in it for years. That is our competitive advantage as a company, because we can see things from another angle, completely and not just a part of the electrical system,” says the CEO of REGULUS Energía.

REGULUS was established in 2016, shortly after the approval of the Wholesale Electricity Market in Mexico, designed to change the way in which the electricity industry was organized in the country. Under the control of CENACE, private companies were given the opportunity to compete with the Federal Electricity Commission (CFE) to strengthen and modernize the sector.

REGULUS entered the market in its early years, but for Jorge Hernández it wasn't just about being part of the market, it was about making a difference. One of the company's main objectives was to participate efficiently to add value to the industry chain. “Here we changed, we took a more financial turn that allowed us to leverage each of our internal operations,” says the executive.

REGULUS focuses on the commercialization of energy and associated products. Jorge Hernández compares it to a brokerage firm or a retail store, but completely dedicated to energy. The company was born with the mission of identifying opportunities that, through an arduous analysis of big data and the REGULUS Risk Model designed “in house”, make it possible to capitalize short-term transactions in the market.

In addition, the company participates in high-risk operations, which, although they require more effort and risk, also generate greater rewards. In its DNA is active participation in the creation of software that optimizes internal operations and the development of new information analysis technologies.

The plans for REGULUS are comprehensive. Jorge Hernández argues that the objective for 2023 is to implement a supplier development strategy that allows the integration of renewable energy into the system. “Our challenge is to consolidate ourselves, to have all our areas and processes extremely defined and certified; to give certainty to our suppliers and customers,” he adds.

The CEO also highlights the value of being a 100% Mexican company, focused on the development of local talent: “Nobody brought us specialists in the industry, here we have been responsible for developing them, to such an extent that the team has demonstrated that, with solid premises in analysis, synergy of profiles and talents, and the correct financial direction, you can beat the biggest ones”. The fact is that commercial business requires adaptation and monitoring; the electricity sector is not linear, so you have to be aware of its variants 24 hours a day, 365 days a year. For this reason, REGULUS has a state-of-the-art software and forecasting system.

Digital is key to what the company does, so there is no doubt that it will continue to evolve thanks to digital transformation. “We have big ambitions: we currently do less than 20% of the operations we had planned when the company started, so there's still a lot of REGULUS for a while,” concludes the company's CEO, Jorge Hernández.