Procedure for Qualified Users Receiving Last Resort Supply

printable version | December 2022

Executive Summary

• On December 6, 2022, the Energy Regulatory Commission (“CRE”) published Agreement A/028/2022 with the procedure applicable to Qualified Users who are receiving the Last Resort Supply to guarantee the continuity of the electricity supply.
• Through the Agreement, CRE ensures that Qualified Users will not be left without electricity supply during the time that Qualified Suppliers are unable to provide the Electric Supply, by extending the deadlines for a Qualified User to continue in Last Resort Supply until such time as the affected Qualified User receives the electricity supply from other Suppliers.
• The Last Resort Supply only operates in the event that the Qualified Service Provider stops providing the electricity supply, and must be provided at maximum prices to the Qualified Users, for a limited time, in order to maintain the continuity of the service.

On December 6, 2022, the CRE published, in the Official Gazette of the Federation, Agreement A/028/2022 (the “Agreement”) with the procedure applicable to Qualified Users who are receiving the Last Resort Supply, in order to guarantee the continuity of the electricity supply under any of the existing modalities in accordance with article 56 of the Electricity Industry Law (“LIE”) and numeral 35, section V, of the General Administrative Provisions, which establish the general conditions for the provision of the electricity supply (“DACG of Electricity Supply”).

The Supplier of Last Resort is the permit holder that offers the Supply of Last Resort to Qualified Users and represents the Exempt Generators that require it in the Wholesale Electricity Market.

The Last Resort Supply only operates in the event that the Qualified Service Provider stops providing the electricity supply, and must be provided at maximum prices to the Qualified Users, for a limited time, in order to maintain the continuity of the service.

Through the Agreement, the CRE guarantees that Qualified Users will not be left without electricity supply during the time that Qualified Suppliers cannot provide electricity supply due to having fallen into any of the assumptions of article 56 of the Electricity Industry Law (LIE) or in the provisions of numeral 35, section V of the DACG of Electricity Supply.

CONTENT OF THE AGREEMENT

The LIE states that, in the event of non-compliance with the payment or guarantee obligations of a Qualified Service Supplier, or when a Qualified Service Supplier stops providing services to an Exempt Generator or a Qualified User for any reason, without them having chosen another Marketer, the Supplier of Last Resort will provide the Last Resort Supply to the affected Qualified Users until they contract the Electric Supply, or under any of the existing modalities.

For its part, the DACG for Electricity Supply establishes that the Last Resort Supply may be offered to Qualified Users who require it for a maximum period of four months.

The Agreement points out the existence of cases of Qualified Users who, between the years 2018-2022, have presented problems and impacts with their Qualified Supplier and have been assigned to the Last Resort Supply, exceeding the four-month period to provide the Electric Supply.

Thus, the CRE issues the procedure to be followed by Qualified Users and Last Resort Suppliers3 when a Qualified User has been assigned to the Last Resort Supply in accordance with the Mechanisms for the assignment of Qualified Users to Last Resort Suppliers, and whose maximum period of four months to receive the Last Resort Supply has ended. It establishes that the following applications must be submitted to the CRE:

1. Extension of the deadline for the Last Resort Supply for a period of four months.
2. Grant a non-extendable period for Qualified Users to comply with the requirements for Measurement Systems due to the change of Supplier.
3. Contract the Supply of Basic Services for a period of no more than 12 months under the conditions of the modality.

In this regard, the Agreement states that for the CRE to grant the corresponding authorization, Qualified Users must follow the general procedure and the specific procedure for each of the above assumptions.

Continue reading the full document here: Procedure for Qualified Users Receiving Last Resort Supply