Specialists Warn About the Impact of CRE’s New Agreement

On Feb. 28, 2023, the Energy Regulatory Commission (CRE) published on the Official Journal of the Federation an agreement to resume the legal deadlines and procedures regarding permit approvals, which were suspended due to the COVID-19 pandemic. The new provisions, enforced on March 1, 2023, have raised some concerns among energy specialists who have warned about potential delays in approvals. 

Particular attention has been drawn to the limitations imposed on the number of applications allowed per month. “Only one application per month may be received per natural or legal person” the document reads. As per the folios, CRE will only admit a certain amount every month for each energy subsector: 50 for hydrocarbons, 120 for pre-registration and 15 for electricity. 

Companies with two or more electricity permits will be particularly affected by the new regulation. "There are gas stationers with 500 permits under the same moral person, this will paralyze the sector," warned Marcial Díaz, expert of the QUA Energy Consultancy firm, during a virtual seminar organized by International Energy Meeting Mexico.

The Mexican Wind Energy Association (AMDEE) published its observations on the agreement on the National Commission for Regulatory Improvement’s (CONAMER) website. "The new conditions are insufficient to attend to the procedures that current and potential applicants require to continue the exercise of their permissive activity,” AMDEE stressed. 

The association stated that this will have a negative impact on the development, construction and implementation of new projects. Also, it will significantly delay the operation of existing projects requiring modifications to their permits or authorizations to be submitted to other institutions, such as the National Energy Control Center (CENACE). 

Additionally, Héctor Treviño, Executive Director, AMDEE, highlighted that the number of folios laid down in the agreement is ambiguous and disproportionate with the size and importance of the energy sector. “The document does not describe whether these folios will be processed in the month they were granted or what the deadlines are in each case,” he said.

Finally, the association pointed out that the conditions of the deadlines and terms limit company participation and operation and do not promote free competition. According to AMDEE, this could lead to delays in the installation of new and necessary generating capacity in Mexico, in the diversification of the energy matrix, in meeting the targets of clean energy production and reduction of greenhouse gas emissions, thus limiting new and better options in terms of electricity supply.