After historic fine, Iberdrola seeks relief in another proceeding

Alejandro Alegría Periódico La Jornada

Monday, June 13, 2022, p. 19Iberdrola

, a Spanish transnational company that in recent days received a multimillion dollar penalty for illegally selling electricity, requested an injunction against another resolution of the Energy Regulatory Commission (CRE), the regulatory body that denied the modification of a generation permit to a power plant located in Querétaro, as it would be detrimental to the end users of the Federal Electricity Commission (CFE)

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The second largest producer of electricity in the country filed the legal recourse before the third district court in administrative matters, specialized in economic competition, broadcasting and telecommunications, with residence in Mexico City and jurisdiction throughout the Republic.

The company seeks to reverse the resolution identified as RES/416/2022, which was voted last May 16 by the regulatory body, to deny the modification of the permit to generate electricity under the cogeneration modality E/1486/COG/2015, granted to Iberdrola Cogeneración Bajío SA de CV, which according to its website has the second cogeneration plant that has been built in the country for Kimberly Clark Mexico.

In December 2019, Iberdrola, the largest private energy producer in Mexico, requested the CRE to change the third condition of the permit granted to generate energy, as it intended to include more partners in the use of electricity, to add 519 beneficiaries of the energy generated through 2 thousand 316 load centers.

An analysis included in the resolution determined that making the changes to the Iberdrola Bajío plant would imply an annual financial deficit of 589 million 830 thousand pesos.

In view of this, the CRE considered that Iberdrola's request is not appropriate because the deficit balance will affect the participants of the wholesale electricity market (MEM) and end users by transferring to them the costs generated by the operation and representation of the intermediation generator (GI) of the load centers and partners that the licensee intends to add to its permit.

The regulatory agency pointed out that approving the request for modification of beneficiaries promoted by the permit holder would constitute an act contrary to the efficient development of the market and the protection of the interests of the users (of CFE basic services).

At the end of May, the CRE sanctioned the energy company with a fine of 9,145 million pesos, equivalent to almost 10% of the global profits of the entire group.

The body decided to apply the sanction because Iberdrola sold electricity to its partners through its Dulces Nombres plant in Pesquería, Nuevo León, according to invoices. The plant had a self-supply permit, so the power generation should only be for Iberdrola Energía Monterrey (IEM), not to sell it to its partners, which were not part of the original project approved by the CRE.

So far, the multinational has not disclosed whether it will challenge the decision, nor has it made any statement to its investors regarding the fine to which it is entitled.

In addition, the SAT is verifying -according to the information presented by the company itself in its consolidated annual financial report for 2021- invoices issued by Iberdrola México, Iberdrola Escobedo and IEM.