Proposed amendment to the terms for requesting the modification of electric power generation permits

Proposed amendment to the terms for requesting the modification of electric power generation permits

On February 13, 2020, the National Commission for Regulatory Improvement (“CONAMER”) published on its draft-regulations portal the proposal submitted by the Energy Regulatory Commission (“CRE”) of the “Agreement amending the general administrative provisions setting forth the terms for requesting authorization to modify or transfer electric power generation or electricity supply permits, contained in resolution number RES/390/2017”

The referenced draft Agreement generally seeks to: (i) prohibit modifications arising from a change in the persons authorized as beneficiaries of the electric power (self-supply) and establishments associated with cogeneration, thereby prohibiting the inclusion of new individuals or legal entities that were not partners thereof when the self-supply or cogeneration permit was granted by the CRE, or that were not included in the original project of the expansion plans; and (ii) prohibit the possibility of registering new load centers, understood as those facilities and equipment that, at a given site, allow an End User to receive Electricity Supply, when, upon the entry into force of the Electric Industry Law, they had not received the public electric power service. The CRE’s main consideration for issuing this draft Agreement is that the nature, purpose and object of self-supply and cogeneration permits has been distorted by allowing the inclusion of persons (individuals or legal entities) that were not partners at the time the permit was granted, or that were not included in the original project of the expansion plans. The CRE has requested that CONAMER grant an exemption from public consultation with respect to this draft, on the grounds that the Agreement would not generate compliance costs for private parties. Currently, any interested party may submit its comments regarding said request at the following link: http://187.191.71.192/expedientes/24002 In general terms, we estimate that the process for the referenced Agreement to enter into force, in the event it is submitted to the Regulatory Impact Analysis before CONAMER, should take approximately between 140 and 180 business days. Should the CRE succeed in establishing the exemption from the Regulatory Impact Analysis, the timeframes could be reduced to between 40 and 60 business days. The Fourth Transitory Article of the draft Agreement provides that such administrative act may only be challenged through the indirect amparo proceeding provided for in Article 27 of the Law of the Coordinated Regulatory Bodies in Energy Matters. For further information, contact our experts: Edmond Grieger, Partner: +52 (55) 5258 1048 | egrieger@vwys.com.mx Adrián Magallanes, Partner: +52 (55) 5258 1077 | amagallanes@vwys.com.mx Luis Burgueño, Partner: +55 (55) 5258 1003 | lburgueno@vwys.com.mx Andrés Nieto, Partner: +55 (55) 5258 1027 | anieto@vwys.com.mx Alberto Córdoba, Partner: +55 (55) 5258 1016 | acordoba@vwys.com.mx