BASHAM NEWS

SUSPENSION AGAINST THE PUBLIC POLICY RELATED TO THE RELIABILITY, SAFETY, CONTINUITY AND QUALITY OF THE NATIONAL ELECTRIC SYSTEM.

Mexico City, October 22nd, 2020.

 

On October 21st, 2020 the National Supreme Court (SCJN, for its acronym in Spanish) confirmed definitely and ratified the suspension against the Federal Decree published by the Energy Ministry on May 15th 2020 whereby the “Public Policy related to the Reliability, Safety, Continuity and Quality of the National Electric System” (the “Energy Policy”) was issued.

The referred suspension follows the constitutional controversy procedure filed by the Mexican Federal Antitrust Commission (COFECE, for its acronym in Spanish) against the Energy Policy promoted by Federal Government, as well as the resolution issued by the SCJN whereby it denied Federal Government´s appeal trying to reverse and lift the suspension that was originally granted on June 25th 2020.

Among the regulations that the Energy Policy include which for the moment, as mentioned, will be suspended are: (i) the possibility of rejecting interconnection petitions from photovoltaic and wind energy power plants, whenever the authority considers that the electric networks are saturated; (ii) definition by the Energy Ministry of energy projects to be considered strategic and necessary to comply with the Government´s energy policies.

The suspension referred herein will allow companies to continue with their plans to put into operation their electric generation power plants without attending the content of the Energy Policy.

It is worth mentioning that the final resolution related to the constitutional procedure is pending to be issued by the National Supreme Court, therefore a close follow up will have to be made regarding the final determination in connection with the constitutionality of the Energy Policy.

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