On Thursday September 1st, the National Center for Energy Control (“CENACE”, for its acronym in Spanish) disconnected IBERDROLA´S Cogeneration Power Plant located at Altamira, Tamaulipas, just a day after it´s cogeneration agreement expired.
ENERTEK´s Cogeneration plant has a total capacity of 144 Megawatts and operated under a type of agreement that was entered by the Spanish company before the 2013 Mexican Energy Amendments.
This outcome comes after the Energy Regulatory Commission (“CRE”, for its acronym in Spanish) denied the Company´s request to operate under the Wholesale Electric Market scheme as well as an electric energy generation permit.
The CENACE disregarded a Mexican District Court injunctive relief granted in favor of Enertek that provided that the Cogeneration Plant should not be disconnected; This precedent violates the legal certainty of the judicial resolution granted by the court and exposes the risk and uncertainty of entering into new agreements with current Wholesale Electric Market stakeholders under the actual administration policies on the Energy sector.
The lawyers of the Administrative and Energy areas of our Firm are at your disposal for any questions or comments you may have regarding this matter.
Juan Carlos Serra
serra@basham.com.mx
Rodolfo Barreda rbarreda@basham.com.mx
Pablo Nosti Herrera
pnosti@basham.com.mx
Pablo Chevez Gallegos pchevez@basham.com.mx
Fernando Osante Kretchmar
fosante@basham.com.mx
