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

On May 20, 2020, as per publicly available information, the National Center of Energy Control (“CENACE”) instructed some of its operational offices throughout México the suspension of the measures included in its resolution dated April 29th, 2020 issued to guarantee the efficiency, reliability, quality, continuity and safety of the Electrical National System due to the pandemic disease COVID-19 (the “Resolution”).

The suspension ordered internally by CENACE derives from the constitutional appeals filed by approximately 23 (twenty-three) Mexican companies involved in renewable energy projects from wind and photovoltaic sources and the provisional suspensions granted by administrative courts in Mexico preventing CENACE to apply such measures to the referred companies.

As per the information available, CENACE has instructed: (i) that for those electric energy generators that were already carrying out pre-operative tests at the time when the Resolution was issued, such test shall be renewed; and (ii) for the 23 Mexican companies that obtained a provisional suspension from the administrative court in connection with the Resolution, having preoperative tests either already programmed or ready to be executed in the near future, same shall be granted with the corresponding authorizations, prior analysis of the National Electric System reliability.

It is worth mentioning that the resolution related to the definitive suspension is pending to be issued by the administrative courts, therefore a close follow up will have to be made regarding the constitutional appeals filed by these companies.

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

Juan Carlos Serra
serra@basham.com.mx

Rodolfo Barreda
rbarreda@basham.com.mx

Jorge Eduardo Escobedo Montaño
jescobedo@basham.com.mx

Miguel Figueroa Morgado
mfigueroa@basham.com.mx

Pedro Reynoso Ramín
preynoso@basham.com.mx

Mexico City, May 21, 2020.