Mexico City, March 4th, 2022.
On March 2nd, 2022, the Second District Court Specialized in Economic Competition, granted a definitive stay of execution preventing the enactment of the provisions to the Grid Code contained in the resolution number RES/550/2021 published by the Energy Regulatory Commission (“CRE” for its acronym in Spanish) on December 31st, 2021.
The resolution contains the rules applicable to the Grid Code in connection with the efficiency, quality, reliability, continuity, security and sustainability of the National Power Grid (“SEN” for its acronym in Spanish).
The Second District Court Specialized in Economic Competition considered that the discretionary authorities granted by the CRE to the National Centre of Energy Control (“CENACE” for its acronym in Spanish) in the Grid Code, to decide the connection and disconnection of plants to the National Power Grid, may allocate renewable energy producers at a disadvantage.
In addition, it was also pointed out that the Grid Code would prioritize the operation of conventional plants, which in turn could cause the production of electricity to be reduced in the future through renewable energies
The stay of execution was granted to the Mexican Energy Association (Asociación Mexicana de Energía), and it has general effects, so the latter must be complied by all parties in the energy sector. However, it will be necessary to analyze each case in particular in order to determine the scope and benefits of such resolution.
Finally, it is important to note that this resolution could be challenged by the defendant authorities by means of a Motion for Review, which will be analyzed and solved by a Collegiate Circuit Court. In this regard, please consider that the meaning and scope of the resolution could be modified.
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