New Regulations Issued on Contributions for the Development of Electrical Infrastructure

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On January 26, 2024, Resolution A/065/2023 was published in the Official Journal of the Federation, by which the Energy Regulatory Commission (“CRE” per its initials in Spanish) issued the General Administrative Provisions on Contributions (“DACGMA” per its initials in Spanish). These will enter into force 365 days after their publication. The drafts of these long-awaited new regulations had already been discussed on the portal of the National Commission for Regulatory Improvement (“CONAMER” per its initials in Spanish) since 2018 and 2022. Finally, the CRE has established –among other matters– a regulated procedure so that the voltage transformation capacity (“kVA”) expressed as electricity demand rights may be transferred with efficiency and certainty between end users. The DACGMA also contains (i) the methodology for calculating contributions; (ii) the criteria and basis for determining and updating the amounts of contributions, and (iii) the corresponding agreement templates.

For the purposes of this article, the concept of “contributions” refers to the participation fees that the applicant owner of a load center must have to deliver or assign to the Federal Electricity Commission (“CFE” per its initials in Spanish) to be able to receive electricity supply. Such payments may be in cash or in kind, or a combination of both. CFE uses these contributions to carry out specific works, expansions, or modifications of infrastructure in order to provide the electricity supply service under the conditions required by the end user in aspects such as demand and voltage.

As examples of the significance of these new regulations, the main changes to the DACGMA include (i) the principle of application of contributions; (ii) the role of CENACE in the calculation and determination of contributions; (iii) the methodology to determine a “Net Present Value” (of the expected rate collection) for determining the charge for medium voltage expansions, and (iv) the construction of works by the applicant, among other aspects. Regarding the development of works for contributions, the new DACGMA defines stages of the construction of interconnection infrastructure for power plants and connection infrastructure for load centers.

At CCN, we have attorneys who focus on applicable legislation and procedures of the Mexican electricity sector and can advise clients on how to determine the effects of these new regulations on their projects.

CCN México Report™

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