DEFINITIVE SUSPENSION AGAINST THE RESOLUTION TO GUARANTEE THE EFFICIENCY, QUALITY, CONTINUITY AND SAFETY OF THE ELECTRIC NATIONAL SYSTEM.

Mexico City, May 27th, 2020.

 

On May 25th, 2020, as per publicly available information, an administrative court in Mexico issued definitive suspensions against the resolution published on April 29th, 2020 by the National Center of Energy Control (“CENACE”) to guarantee the efficiency, quality, continuity and safety of the National Electric System, as part of the constitutional appeals filed by companies involved in renewable energy projects from wind and photovoltaic projects.

The definitive suspension referred herein above will allow some companies to continue with their plans to put into operation their electric generation power plants without attending the resolution issued by CENACE on April 29th 2020, which otherwise would have caused indefinite delays for such power plants to entry into operative operations.

As of this date, approximately 13 companies engaged in renewable energy activities and with projects already ongoing and developed throughout México have obtained the definitive suspension mentioned before.

It is worth mentioning that the final resolution related to the constitutional appeal is pending to be issued by the administrative courts, therefore a close follow up will have to be made regarding the court determination in connection with the constitutionality of CENACE resolution.

Additionally, CENACE has publicly announced its intention to challenge the definitive suspension referred herein, which challenge in any case would have to be solved by a different administrative court.

 

The lawyers of the energy, infrastructure and administrative area at firm are available for any questions or comments on the above.

SINCERELY,

 

Juan Carlos Serra

serra@basham.com.mx

 

Rodolfo Barreda

rbarreda@basham.com.mx

 

Jorge Eduardo Escobedo

jescobedo@basham.com.mx

 

Miguel Figueroa

mfigueroa@basham.com.mx

 

Pedro Reynoso

preynoso@basham.com.mx