Modifications to Network Code Provisions
Dear Client:
The Energy Regulatory Commission (“CRE”) will update the requirements established in the “General Administrative Provisions that establish the efficiency, quality, reliability, continuity, safety and sustainability criteria for the National Electric System: (Network Code)” (“Disposiciones Administrativas de carácter general que establecen los criterios de eficiencia, calidad, confiabilidad, continuidad, seguridad y sustentabilidad del Sistema Eléctrico Nacional (Código de Red)”), also known as “Network Code”, previously published in the Federal Official Gazette on April 8th, 2016.
The Network Code establishes the minimal technical requirements that must be complied by all the users from the National Electric System (Sistema Eléctrico Nacional). Its main purpose is to promote and incentivize the development, maintenance, operation, expansion and modernization of the NES.
On July 22nd, 2019, the CRE published the proposal to abrogate the present Network Code, commencing a public consultation process to receive comments and suggestions from any interested parties in order to be considered in the new Network Code to be published in the following weeks.
The new regulation will update the procedures and mechanisms used to ensure compliance with the minimal technical requirements that users must comply with; the different penalties and schemes applicable when those requirements are not fulfilled; force majeure events; and the applicable dispute resolution procedures.
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These provisions are of interest to any user with medium or high electricity consumption, since they directly influence the investment that must made in their connection points, being subject to penalties in case of non-compliance.
Our firm is currently assisting various entities in the review of their necessities and obligations considering these new provisions. Similarly, we provide advice for the proper preparation and submission of the work plans required to comply with the Network Code, and we defend clients in case of inspections or penalty procedures.
For more information in this regard, please do not hesitate to contact our Energy & Infrastructure team.
Guadalupe Esparza Sanchez lesparza@rrs.com.mx
Diego Alvarez Ampudia dalvarez@rrs.com.mx
