BASHAM NEWS

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

Mexico City, October 27th, 2020.

 

On October 26th, 2020, as per publicly available information, a district judge in Mexico, specialized in antitrust, broadcast and telecommunications matters, issued a sentence against the resolution published on April 29th2020 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 sentence referred herein above would allow 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 enter into operative operations.

Although the sentence was issued as part of a constitutional appeal (amparo) filed by two energy generation companies, the judge exposed that the protection granted by means of its sentence should be extensive to all power plants producing electricity by means of renewable energy, otherwise there would be a violation to the free competition right.

It is worth mentioning that the sentence referred above could be challenged by CENACE, which challenge in any case would have to be solved by a different court, therefore a close follow up will have to be made regarding CENACE´s action against this resolution.

In any case, the non-application of CENACE´s policies will continue relaying in the suspensions that have been granted to different energy generation companies.

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

 

S I N C E R E L Y,

 

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