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.
Foley attorneys have the necessary experience in energy and administrative litigation matters to assist clients in challenging this new resolution and protecting their investments in Mexico.
