November 13, 2020

Mexico – CRE Board to Consider the Amendment of Generation Permits

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Since March 2018 the Mexican Energy Regulatory Commission (Comisión Reguladora de Energía, “CRE“), by means of Acuerdo A/010/2018 appointed the Chief of the Electricity Department (Jefe de la Unidad de Electricidad) as the person responsible for the review and authorization of the requests filed by generation permit holders in connection with changes to the milestone dates set forth in the relevant permits.[1]

Generation permits include as milestone dates, the start and completion date for construction works, as well as the date for commencement of commercial operation. If a certain project intends to change such dates, a request for the amendment of the corresponding permit needs to be filed.

By appointing the Chief of the Electricity Department in 2018, the Government Board (Órgano de Gobierno) assured permit holders a more expedite review and authorization of the amendment requests.

Nevertheless, in November 2020, by means of Acuerdo A/039/2020,[2] the CRE decided to abruptly repeal Acuerdo A/010/2018.  As a result, the Government Board of the CRE shall be the only authority with the power to approve or deny the amendment requests filed in connection with milestone dates. It is expected that as a result of the increased workload of the Government Board, and the fact that its members meet less frequently, the consideration and approval of new amendments of generation permits may result in delays.

[1] Acuerdo por el que la Comisión Reguladora de Energía delega al Jefe de la Unidad de Electricidad, la facultad de autorizar o negar las modificaciones de fechas estimadas de los programas de inicio y terminación de obras, así como de inicio de operación de la central de generación de energía eléctrica de los permisos de generación; y de las autorizaciones de importación o exportación de energía eléctrica.

[2] Acuerdo de la Comisión Reguladora de Energía por el que se abrogan los diversos A/074/2017 y A/010/2018.

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