CRE Closes 2022 With 282 Approved Permits
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CRE Closes 2022 With 282 Approved Permits

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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Tue, 12/13/2022 - 17:00

In the past four months, regulator CRE liberated 282 permits from the 940 that remained in the backlog. Just today, it released 17 permits for service stations, largely doing away with the lag of authorizations that bogged down the commission since 2019, despite votes against permits from two commissioners regarding some of the projects.

Commissioner Norma Leticia Campos voted against 40 projects waiting for authorization because she did not have sufficient time to analyze the projects. Moreover, she noted discriminatory treatment against some companies in the sector to benefit other larger groups, which she pointed out are being accused in the media of illicit activities.

Commissioner Luis Linares voted against the authorization of some of the permits because the petitioners already operated a large number of stations. 

Since the end of August, CRE has approved 282 permits for service stations, unlocking part of the delayed authorizations the regulator held since the beginning of the COVID-19 pandemic. Some permits had been stalled for up to 24 months. According to Marcial Díaz Ibarra, President, the Association of Regulation in the Energy Sector (ARSE), the government’s stop in permitting appears to be ending, as 2022 has seen 400 energy authorizations issued.

Nonetheless, Leopoldo Vicente Melchi, President, CRE, recently admitted that the Commission maintained a lag of 940 requests for service stations as of September 2022. Melchi justified the permit approvals taking time due to the in-depth analysis the organization carries out for each of them. 

Alejandro Montufar, CEO, PETROIntelligence, said that the lags are likely more due to the lack of clear rules for the authorization procedures and staff turnover, as well as government changes.

Despite the increase of granted authorizations until today, the regulator retains a backlog of at least 658 authorizations. Nevertheless, some commissioners are noticing a change in the interior of the organization.

At the moment, Mexico is forming concrete answers to the consultation process started by the US and Canada under the USMCA’s Dispute Settlement Chapter due to Mexico’s alleged violations of the trade agreement. International pressure also mounted because of the stalled permits. “I think this is the year in which the regulated exercised their rights and pressured the authorities to respond and break the administrative silence as well as the drought in permits. We can see the sector improving, but there are still many challenges to overcome. There is a regulation in the pipeline close to being published and one must be attentive to know how to adapt," commented Marcial Díaz Ibarra.

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