September 20, 2020

Volume X, Number 264

September 18, 2020

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September 17, 2020

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New Wheeling Charges for Renewable and Efficient Cogeneration Power Projects in Mexico

On June 10, 2020, the Federal Electricity Commission (Comisión Federal de Electricidad, known as CFE), the Mexican utility operator, published in the Official Gazette (Diario Oficial de la Federación) the new wheeling fees for renewable and efficient cogeneration power projects that  executed an interconnection agreement with CFE prior to the energy reform in 2013.

The new wheeling charges are based on a resolution adopted by the CRE on May 28, 2020. It is worth mentioning that neither the resolution nor the methodology for the calculation of the new wheeling charges has been published in the Official Gazette by the Energy Regulatory Commission (CRE). This means that CFE is implementing resolutions adopted by the CRE that have not been enacted and are not in effect yet.

The new wheeling charges are the following:

Voltage  Wheeling Charges
June 2020 (peso/kWh 
New Wheeling Charges
(peso/kWh) 
Impact 
High Voltage  0.05100  0.27857  446% 
Medium Voltage  0.05100  0.25865  407% 
Low Voltage  0.10199  0.89284  774% 

Affected parties, meaning all companies that have a power generation permit granted by the CRE under the self-supply or power cogeneration scheme and have executed an Interconnection Agreement with CFE (a CIL) under the Public Electricity Service Law (Ley del Servicio Público de Energía Eléctrica), and the off-takers of such permits, are entitled to challenge these new wheeling charges through an amparo procedure.

Considering that the new wheeling charges may take effect in July 2020, the amparo claim should be submitted within 15 business days of June 10, 2020.

© 2020 Foley & Lardner LLPNational Law Review, Volume X, Number 163

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About this Author

Daniel Aranda Corporate & Trial Attorney Foley & Lardner Mexico City
Partner

Daniel Aranda is a bilingual, bicultural corporate and trial lawyer serving clients in the U.S., Mexican and international energy law, pipeline, banking and finance sectors. Daniel is also a member of Foley's Energy Industry, and Government Procurement Practice in Mexico City.

Daniel represents foreign and domestic clients with all aspects of their international energy law needs, including:

  • Representation before the Mexican energy authorities (CRE, CNH, Ministry of Energy, Pemex and CFE)
  • Mergers and acquisitions
  • Project development and...
52.55.5201.4518
David Berezowsky Finance Practice Mexico City Lawyers Foley & Lardner
Of Counsel

David Berezowsky is a business lawyer and an of counsel with Foley & Lardner LLP. David is based in the firm’s Mexico City office where he is a member of the firm’s Finance Practice. His areas of practice cover a broad range of business and financial matters including, renewable energy, project finance, infrastructure projects, government procurement projects, mergers and acquisitions, joint ventures, life sciences, and administrative litigation.

David’s experience in renewable energy and project finance includes representing developers and investors in the construction, development, and financing of renewable energy generation facilities, including solar, wind, hydro, and biomass facilities. David has also assisted generators, suppliers and off-takers in the negotiation of power purchase agreements under both the grandfathered and new power market regulations. He also has experience in providing legal advice to clients with respect to governmental procurement and public works procedures, including bids for contracts for the acquisition of goods and services at federal and local levels.

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