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Saturday, December 10, 2022

Mexico’s energy regulator fines Spain’s Iberdrola $467 million

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Mexico’s energy regulator fined Spanish firm Iberdrola $467 million for improperly selling electricity to third parties in violation of domestic “self-supply” laws, a document published Friday said.

The Energy Regulatory Commission (CRE) stated that Iberdrola was “obliged to generate electricity exclusively to meet the self-sufficiency needs of its partners … and to sell, resell or dispose of capacity or electricity by any statutory act”. Not to do,” according to the document.

Mexico’s “self-supply” contracts require private electricity generators to provide energy only to specific partners listed at the time of contract signing.

Surplus of private generators can be sold to the state-owned Federal Electricity Commission (CFE), which maintains a monopoly on the transmission and distribution of electricity to end consumers.

The CRE document argues that the breach occurred between January 1, 2019 and August 31, 2020, at Ibedrola’s branch in the northern industrial city of Monterrey.

The fines come at a difficult time for Mexico’s electricity industry, as President Andres Manuel López Obrador tries to get it back into the public domain.

Mexico’s Congress rejected a constitutional reform bill in April that would have strengthened the state’s role in electricity generation, a major move by a left-wing Mexican president that has been publicly criticized by the United States.

That reform would have reversed a 2013 move to privatize Mexico’s power sector and give the state-owned Federal Electricity Commission (CFE) more power over the private sector and foreign companies.

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This article is republished from – Voa News – Read the – original article.

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