MEXICO CITY - In the first minute of the entry into force of the electricity counter-reform, Mexico would have an energy deficit that the CFE would not be able to cover, which would immediately imply "shutting down" part of the system, said Eleazar Castro, consultant and specialist in electricity markets.
The CFE has 50 percent of the total generation capacity available, but the reform initiative requires it to cover 54 percent of the market for the private sector to secure the remaining 46 percent, without any protection to guarantee a transitional regime, Castro said during the Open Parliament organized by Congress last week.
"You put a restriction on the CFE to cover 54 percent of the market, but it only has general availability of 50 percent because its plants have unavailability or failures, are we going to turn off that 4 percent?" questioned Castro in an interview.
In turn, he added, the private sector can say it is not participating and go to international tribunals to enforce its rights.
"You cannot operate a plant in litigation," he explained.
The specialist, who from Cenace participated in the construction of the Wholesale Electricity Market model resulting from the 2013 reform, anticipated a series of operational risks, since the initiative did not consider a transition regime as it did then.
"If you eliminate all contracts and there is no intermediate rule of at what prices and under what conditions I am going to buy from you, it immediately generates a limbo.
"The worst thing that could happen is that all this becomes very discretionary for the CFE to determine under what conditions you buy."