Wednesday, March 22

New rules hit competition

The Energy Regulatory Commission (CRE) published two agreements that will affect the entire electricity industry, which came into force on January 3, said lawyers from the Nuevo León Energy Cluster.

“On December 31, 2021, two CRE agreements were published in the Official Gazette of the Federation that will have considerable repercussions on the electricity industry and entered into force on January 3 of this year,” said Jorge Arrambide Montemayor, of the Santos office. Elizondo.

The CRE, he added, issued the new Grid Code, while through agreement A/037/2021, it issued the new rules for interpreting generation through isolated supply.

“Another modifies the agreement A/049/2017 by which the interpretation criterion of the concept of own needs was issued, established in article 22 of the Law of the Electricity Industry,” he said.

The isolated supply is a tool that consumers have to generate electricity on site or connected to the power plant through a particular network, to meet their own needs.

“Before the new agreement, a third party was allowed to invest in, operate and manage a power plant for the benefit of the consumer through the use of mechanisms such as local generation and/or acting as a generation company for the third party. The foregoing benefited Mexican consumers by allowing opportunities to save on the payment of electricity consumption and be more competitive”, explained Arrambide.

It is noteworthy that this circumstance occurs on a weekend where President Andrés Manuel López Obrador (AMLO) and directors of the CFE challenged businessman José Antonio Fernández Carbajal, president of FEMSA, the firm that owns the OXXOs, to publicly verify that the chain’s stores do not consume more electricity than an average Mexican family.

Arrambide warned that through the new agreement in a transcendental way, the rules of the isolated supply are changed with the following: the concept of Local Generation is eliminated; the concept of Interest Group is modified; The concept of Generation Companies is eliminated and the surpluses of power plants in isolated supply may no longer be injected into the National Electric System or sold on the market or to a supplier, in addition to the fact that power plants and load centers in isolated supply cannot may co-exist with power plant units included in a legacy interconnection contract.

“Different legal specialists conclude that the new agreement harms both generators and consumers of electricity because it violates the fundamental principles of legality, legal certainty, regulatory improvement, freedom of trade, freedom of association, hierarchical subordination of the law, which are found in Constitutional articles 1, 5, 9, 14, 16, 25 and 133″, warns Arrambide Montemayor.