On December 31, 2021, the Energy Regulatory Commission (“CRE”) published, in the Official Gazette of the Federation (“DOF”), “Resolution No. RES/550/2021 of the Energy Regulatory Commission for the that the General Administrative Provisions are issued that contain the criteria of efficiency, quality, reliability, continuity, security and sustainability of the National Electric System: Network Code”(the “Resolution”). Through this Resolution, the regulation on efficiency, quality, reliability, safety, and sustainability of the national electrical system (“SEN”) is established, which must be applied for its development, maintenance, operation, and planning.
The Network Code is the integration of all administrative provisions of a general nature that contemplate the technical requirements for the correct and efficient development of the planning, control, operation, access, and use of the SEN. Therefore, the Resolution has as The main objective the issuance of the criteria that must be followed to guarantee the efficiency, quality, reliability, continuity, security, and sustainability of the SEN under a scheme of open and non-discriminatory access to the electricity market.
The new Network Code is made up of two main sections, which are divided into: a) general provisions of the SEN, and b) operative provisions of the SEN. Likewise, the instrument includes 12 (twelve) interconnection criteria for power plants, 11 (eleven) connection criteria for load centers, and 8 (eight) criteria for electrical substation arrangements for the interconnection of power plants.
In order to achieve the aforementioned objective, various modifications to the Network Code were proposed, among which are:
- The scope of the regulation is modified about the order of the technologies considered for the reliability generation reduction procedure, which leads to greater discretion on the part of the National Center for Energy Control (“CENACE”) in the procedure;
- The causes of liability applicable to generators are modified, especially those causes that lead to an interruption in the electrical supply;
- The technical requirements for the interconnection of power plants to the SEN are modified, and
- New requirements are imposed on the control of active and reactive power during plant failures, which raises the costs of power plants.
In addition to the above, the Resolution is not transparent about the regulation that will apply to load centers or power plants that intend to migrate from the legacy regime to the wholesale electricity market, especially regarding which version of the Grid Code would apply to them. That is, those power plants that are in trial periods or in the process of migrating to the MEM should adhere to the previous Grid Code since their migration process was initiated before the entry into force of the Resolution. Otherwise, the new Network Code application could be considered a retroactive act in violation of Article 14 of the Constitution.
Our office offers the possibility of supporting the affected agents based on the arguments presented in general in this document, as well as on the specific aspects derived from the analysis and study of each particular case, to develop an ad strategy ad hoc for each situation, with the collaboration of our lawyers specialized in energy, economic competition, human rights, constitutional litigation and protection of rights. The Agreement entered into force the day after its publication in the DOF.
The Resolution and its annex entered into force the day after its publication in the DOF.
 Original publication in the DOF: https://www.dof.gob.mx/nota_detalle.php?codigo=5639920&fecha=31/12/2021
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