Mexican Court Orders Iberdrola Plant Reopened

Photo: Iberdrola


After the Mexican government obtained a court order in February allowing it to disconnect two electric grids owned by the Spanish-owned energy firm Iberdrola in its Dulces Nombres plant, the company announced Tuesday, March 29, that is will once again begin operations in the near future.

On Feb. 1, after the expiration of Iberdrola’s interconnection contract and after Mexico’s Energy Regulatory Commission (CRE) refused to renew the permit, the National Center for Energy Control (Cenace) ordered Iberdrola to halt all electrical generation at two of its units at its Pesquería plant, which has a capacity of 500 megawatts.

Iberdrola appealed the order before the First District Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, and was granted a suspension of that order on Tuesday, March 22.

The suspension specified that the appeal proceeding had been resolved and that the interconnection contract would not be terminated, but would continue to be in effect without the need for an extension.

It also stated that, in the event that a disconnection from the National Electric System (SEN) had been made, as is the case of the units of the Dulces Nombres power plant, the interconnection must be reestablished.

The halted units provided energy to hundreds of companies through contracts that after the stoppage were granted to the state-run Federal Electricity Commission (CFE).

However, the cost of energy supplied through the CFE was between 20 and 40 percent more expensive than from Iberdrola.

Mexican President Andrés Manuel López Obrador (AMLO) has consistently defamed Iberdrola during his daily press conferences, claiming that the company was overcharging and exploiting consumers.



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