DACG's to authorize the Inspection Units that will verify Regulatory Compliance in the areas of generation, transmission and distribution of electric energy

Executive Summary:

• At the ordinary session held on March 26, 2024, the Governing Body of the Energy Regulatory Commission (CRE) approved Agreement No. A/054/2024. This agreement establishes the regulatory bases for authorizing inspection units that evaluate compliance with the technical requirements for the connection of load centers and the electrical industry to the National Electric System. The agreement also defines the procedure for carrying out inspections and the operating conditions of the inspection units.
• Article 2 of the Electricity Industry Law (LIE), amended by decree published in the Official Gazette of the Federation (DOF) on November 6, 2020, establishes that the electricity industry includes, among other activities, the generation, transmission and distribution of electric energy, as well as the control of the National Electric System. The law also declares that these activities are of public interest.
• Article 8 of the LIE establishes that the generation, transmission, distribution, marketing and supply of primary inputs for the electrical industry will be carried out independently of each other and under conditions of strict legal separation.
• Article 12, sections XXXVII, XL, XLVII and XLIX of the Electricity Industry Law (LIE) establishes that the Energy Regulatory Commission (CRE) is empowered to:
  • (I) Issue and apply the necessary regulations regarding efficiency, quality, reliability, continuity, security and sustainability of the National Electric System (SEN).
  • (II) Define the terms for the approval of the verification units and inspection units referred to in section IV of article 33 of the LIE and issue the corresponding forms.
  • (III) Verify compliance with the LIE, its regulations and other applicable administrative provisions. To do so, it may order and carry out verification visits, require the submission of information and summon members of the electrical industry to appear. These actions are intended to supervise and monitor, within the scope of its competence, compliance with the applicable legal provisions.
  • (IV) Issue and monitor compliance with general administrative provisions in relation to the powers conferred by the LIE.

This Agreement is issued for the purpose of issuing the General Administrative Provisions that establish the regulatory bases for authorizing inspection units for load centers and the electrical industry in the areas of generation, transmission and distribution of electrical energy, as well as the procedure applicable to the inspections and the operating conditions of the inspection units.

These general Administrative Provisions seek to specify the processes for authorization, modification, renewal and updating of Inspection Units. In addition, they include provisions for the authorization and operation of Inspection Units that:

• Certify satisfactory compliance with the performance tests required for the entry into operation of Power Plants and Load Centers
• Certify compliance with the required performance tests, established in the Manual for the Interconnection of Power Plants and Connection of Load Centers, and in accordance with the procedure for the Declaration of Entry into Operation of Power Plants.
• Evaluate compliance with the technical requirements established by the Grid Code for Load Centers connected to the National Electric System.

It is important to know the requirements that the Inspection Units must meet so that they can assist the Energy Regulatory Commission (CRE) in the following functions:

• Validate the program for starting and completing works for the electricity generation permits granted by the CRE.
• Monitor compliance with other regulated activities of the facilities, in accordance with their description and technical characteristics under which they were designed, built, operated and maintained.
• Supervise the activities of: generation, transmission and distribution of electric energy, in accordance with the authorizations granted by the CRE.

Likewise, the legal, regulatory and administrative provisions that will serve as a basis for the inspection acts are detailed below: I) Electricity Industry Law (LIE); II) Regulations of the Electricity Industry Law (RLIE); III) General Administrative Provisions regarding open access and provision of services in the National Transmission Network and the General Electricity Distribution Networks (Open Access and Service Provision Provisions); IV) General administrative provisions containing the criteria of efficiency, quality, reliability, continuity, security and sustainability of the National Electricity System: Grid Code (Grid Code); V) Manual for the Interconnection of Power Plants and Connection of Load Centers; VI) Operating Procedure for the Declaration of Entry into Commercial Operation of Power Plants and Load Centers; as well as the criteria for establishing the specific characteristics of the infrastructure required by CENACE or the Distributor, as appropriate, Mexican standards, reference standards, international standards, standards and reference technical specifications.

The Provisions contemplate three types of Inspection Units:

• Power Plant Interconnection and Load Center Connection Inspection Units.
• Inspection Units for Performance Testing of Power Plants and Load Centers.
• Inspection Units for Technical Requirements of the Grid Code for Load Centers.

Each type of Inspection Unit has a specific area of ​​competence and is qualified to carry out the verifications corresponding to the type of activities it is going to verify.

By issuing the Provisions and establishing specific requirements, regulated entities are guaranteed that the entities issuing either the Certificate of Compliance or the Grid Code assessment document have sufficient technical capabilities to carry out inspections and assessments in accordance with the corresponding regulatory provisions, including the Grid Code, for generation, transmission and distribution activities.

Among the instruments provided for in the Provisions is the Certificate of Compliance. This document is issued by the corresponding Inspection Unit through the Electronic Parts Office (OPE) portal.

It certifies compliance with the infrastructure, works and installations of Generators, Transporters and Distributors of Electric Energy, as well as to certify installations for the interconnection of Power Plants or the connection of Load Centers to the National Transmission Network or to the General Distribution Networks, or the performance tests of Power Plants or Load Centers.

It is worth noting that the Provisions detail the complete evaluation process that the Energy Regulatory Commission will carry out to determine whether the Inspection Unit and its inspectors meet the requirements and pass the corresponding evaluation. Candidates will have two opportunities to pass the evaluation.

If the candidate for inspector does not pass the evaluation in accordance with the terms established in the Provisions, he/she may reapply for an evaluation process after twelve months have elapsed since the notification of the Commission's resolution containing the respective refusal. To do so, he/she must prove that he/she has received the corresponding training and instruction.

It should be noted that the Provisions establish a 3-year term for authorization as an Inspection Unit. This term begins to count from the notification of the Authorization Resolution and may be renewed.

Additionally, the Provisions require Inspection Units to have a valid civil liability insurance policy.

Failure to comply with any of the obligations established for inspection units may lead to sanctions ranging from temporary suspension to permanent revocation of the authorisation, including disqualification from acting as an Inspection Unit for a period of three years.

Links to the note:

https://sidof.segob.gob.mx/notas/5727366