Thursday, June 30 2022 Sign In   |    Register
 

News Quick Search


 

News


Front Page
Power News
Today's News
Yesterday's News
Week of Jun 27
Week of Jun 20
Week of Jun 13
Week of Jun 06
Week of May 30
By Topic
By News Partner
Gas News
News Customization
Feedback

 

Pro Plus(+)


Add on products to your professional subscription.
  • Energy Archive News
  •  



    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    CFE claims a payment of $190 million dollars from Iberdrola in an international arbitration.


    May 12, 2022 - CE Noticias Financieras

     

      The state-owned CFE is claiming a payment of 190.2 million dollars from Spain's Iberdrola within an international arbitration process opened by the private company last year. The process, which dates back to last March, has Topolobampo III, a combined cycle power plant awarded to Iberdrola in 2017 to provide electricity to the national utility, at the center of the dispute. The construction of the plant has already been completed, but it has not entered into operations because the Spanish company has not received the necessary documents for commercial operation tests, sources explained a few months ago to Expansión . Iberdrola's report does not mention whether the payment to the CFE could imply the start-up of the natural gas plant. The CFE conditioned the start-up of the plant located in Sinaloa to the payment of a fine of 16 million dollars. Iberdrola, which decided to escalate the judicial process, is asking the state company to recognize that the power plant has not come into operation due to "force majeure" and that the state company declare the penalty it decided to impose as incorrect.

      But now, the state-owned company has answered the arbitration claim and has filed a counterclaim -which could be explained as a counterclaim process- and has asked the Spanish company for a payment of 185.5 million dollars for claiming damages and 4.7 million dollars for not having reached the percentage of national integration, according to an Iberdrola report. "The CFE has opposed Iberdrola's claims and has filed a counterclaim in the arbitration," the text reads. The document gives no further explanation of the state-owned company's claims. The national integration demanded by the CFE can be understood as the requirement that a percentage of the labor and components of the assets be of national origin. In the process, Iberdrola has also requested the return of US$2 million it paid as penalties and a payment of US$10 million for expenses incurred and for indemnification of damages. The state-owned company and Iberdrola were consulted, but declined to comment. The arbitrations are part of the contracts signed by this type of companies, as part of the dispute resolution processes of the T-MEC and so far it is the only one that has been made public between the two companies that have maintained a tense relationship since the beginning of the six-year term. The Spanish company, the dominant private electricity generator in the country, has become the main target of presidential attacks against the electricity industry.

    TOP

    Other Articles - International


    TOP

       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.