COMISION FEDERAL DE ELECTRICIDAD: Federal Electricity Commission: Patrimony of the People of Mexico

Comision Federal de Electricidad issued the following announcement on May 16.

The Federal Electricity Commission was created in 1937 as a public non-profit company, to offer the public electric service to 60% of Mexicans who lacked this fundamental service; and it is now a productive company that guarantees the State's stewardship, to offer the electricity supply that already reaches 99% of Mexicans.

The CFE contributes to complying with the mandate of Article 27 of the Constitution, which indicates that the planning and control of the National Electric System (SEN), as well as the public service of transmission and distribution of electrical energy, corresponds exclusively to the Nation.

The State, by exercising its stewardship in these strategic areas, protects the security and sovereignty of the Nation. The Mexican State is responsible for guaranteeing the supply of electrical energy.

The law establishes that the CFE is a productive company in the public interest and the exclusive property of the Mexican State.

By mandate of the law, the CFE acts in a transparent, honest, efficient manner, with a sense of equity and social and environmental responsibility; seeks productivity with sustainability, minimizes costs of the electricity industry for the benefit of the population, contributes to national development, guarantees open access to the National Transmission Network and General Distribution Networks, as well as the efficient operation of the electricity sector and the competition.

The CFE provides the public service of transmission and distribution of electrical energy on behalf of the Mexican State; generates, distributes and markets electrical energy and associated products, buys and sells fuels, executes engineering, research, geological and geophysical activities related to the generation, transmission, distribution and commercialization of electrical energy.

Pursuant to the Electricity Industry Law (LIE), electricity supply is a service of public interest and the activities of generation, transmission, distribution, commercialization and operational control of the SEN are of public utility and will be subject to the obligations of the Service. Public and Universal.

The federal government, generators, transporters, distributors, marketers, qualified users, market participants and CENACE, each within the scope of its competences, will execute the necessary acts to maintain the integrity and efficient operation of the SEN.

The state productive companies and their subsidiaries and affiliates are responsible, in terms of law, for guaranteeing the electricity supply to end users.

The Agreement that issues the Policy of Reliability, Safety, Continuity and Quality in the National Electric System, allows the CFE to ensure the reliability and safety of the system, and the participation of the CFE in the Wholesale Electricity Market in an equitable and competitive, for the benefit of end users.

The CENACE agreement ensures the reliability of the National Electric System in the face of the decrease in the demand for electrical energy due to the pandemic and, because intermittent renewable power plants produce oscillation in the SEN and cause interruptions, requires that the injection of energy from These sources are put off during the pandemic.

Similarly, it was decided to operate the transmission network at the maximum design level, to avoid damage in regions with a high concentration of intermittent renewable technologies. This guarantees the least number of interruptions to end users.

The update of the Policy of Reliability, Security, Continuity and Quality of the National Electric System, allows the adequate planning of the construction and interconnection of new power plants according to the growth of electricity demand; the optimal design and construction of transmission and distribution networks according to the location of power plants and load centers; guaranteeing at all times the reliability, security, continuity and quality of the electrical supply to users.

The Reliability Policy does not violate the rule of law, because the laws are not changed, but the application rules are improved, to protect the general interest, so that general blackouts are not caused, due to the neglect of the basic rules of operation and planning of the electrical system, before the high regional concentration of intermittent generation.

It is incorrect to affirm that the Reliability Policy violates the rule of law, on the contrary, the guarantee of Electric Supply to end users in the face of the pandemic is being ensured.

The Reliability Policy will allow the orderly development of the growth of the electricity sector, in accordance with the economic growth of the country.

It seeks to articulate once again the integral planning of the National Electric System, strengthening the CFE so that it can once again be a pillar of national development, in order to achieve energy independence and low costs, always complying with international commitments on climate change and promoting generation distributed, as well as electromobility.

Every electrical system must determine the development of its infrastructure in the short, medium and long term, which is why the participation of the CFE in the planning of the National Electric System is important, defining the need for new power plants, as well as investment and development. of transmission and distribution networks.

It should not be forgotten that the CFE, in the name of the State, is responsible for the Transmission Network and the General Distribution Networks, so its participation in the planning of the National Electric System is essential and has a constitutional basis.

It is up to the federal government to reorder, through planning, the integration of renewable energy in a safe and reliable manner.

It is essential to maintain the State's leadership in renewable energy, regardless of the participation of national or international individuals.

The CFE's strengthening plan through the construction of 24 generation plants, through an investment of 8,000 million dollars, will encourage private investment, job creation and contribute to the participation of future renewable generation in a safe and reliable manner..

By recognizing costs for the penetration of variable renewable generation, CFE will resolve cost recovery and ensure the reliability and security of supply for more than 44 million users.

Private national and foreign investment continues, as Mexico continues to be attractive in this regard, with investments in the sector in process and with a regulatory framework that allows balanced competition without corruption.

Mexico generates certainty to promote new investments.

Original source can be found here.