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PULSE NEWS MEXICO

Mexico’s Energy Regulatory Commission (CRE) on Friday, May 27, fined Iberdrola Energía Monterrey an exuberant amount of 9,145,388,400 pesos for the sale of energy to customers that were not original partners in its self-supply permit.

When Iberdrola opened the plant in question, its total investment was 9 billion pesos, that is 145,388,400 less than the fine imposed by the CRE.

Iberdrola has long been a target of verbal attacks and unsubstantiated allegations of excess earnings by Mexican President Andrés Manuel López Obrador (AMLO), who has consistently prioritized electricity for the state-run Federal Electricity Commission (SFE) over cleaner, less expensive private-sector suppliers.

According to the resolution issued by the CRE, Iberdrola contravened the provisions of Article 36, Section l, subsection A of the Electric Power Public Service Law (LSPEE), in which it is established that electric power must not be sold to natural or legal third parties who were not partners not named when the original project that includes expansion plans was approved.

“From the period of Jan. 1, 2019 to Aug. 31, 2020, which includes the Digital Tax Receipts by Internet (CFDI) provided by the General Administration of Hydrocarbons of the Secretariat of the Treasury … it is noted that the permit holder commercialized the electrical energy generated by the plant selling it to its partners, in contravention of what was planned,” the CRE document stated.

Iberdrola manages the Dulces Nombres power plant, whose interconnection contract expired on Feb. 1.

Despite Iberdrola having requesting from the CRE a change in its self-supply permit for a generation permit to continue its operation, the permit was denied and the Spanish-based company was ordered to impose a total stoppage of its units.

But after the presentation of legal injunctions by Iberdrola, the First District Court in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications granted on March 22 a definitive suspension in favor of the complainant, with which the reconnection and supply was ordered of it energy production.

Iberdrola has denied any illegal or improper conduct and has claimed that the CRE presented valid evidence that demonstrates the commercialization of energy electrical, and will no doubt appeal the CRE fine.

 

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