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Senes publishes the agreement to guarantee the efficiency, quality, reliability, continuity and security of the national electric system

On April 29, 2020, the National Energy Control Center (for its initials in Spanish “CENACE”), issued the Agreement to guarantee the Efficiency, Quality, Reliability, Continuity and Security of the National Electric System (“Agreement”), on the occasion of the recognition of the epidemic of disease due to the SARS-COv2 virus (COVID-19).

As a consequence of the foregoing, the Plenum of the Federal Commission on Economic Competition (for its initials in Spanish “COFECE”), through a session dated May 6, 2020, issued Opinion No. OPN-006-2020, from whose analysis and recommendations were made known through this media.

In follow-up to the foregoing, it was made known the Agreement by which the Policy of Reliability, Safety, Continuity and Quality in the National Electric System, issued by the Ministry of Energy, which was published in the Official Gazette of the Federation on May 15, 2020 (“SENER Agreement”). Of the recitals, the following is highlighted:

“That this policy contemplates in a more orderly manner the penetration of Power Plants with Intermittent Clean Energy, photovoltaic and wind power, anticipating that the Alert and Emergency Operating States will be reduced to a minimum according to international experiences, reducing as far as possible the forced exits associated with generation are particularly dangerous on the ramps of sunrise and sunset, as well as at critical hours of the National Electric System and that expose financial damage to the National Electric System, as well as to End Users. Said strengthening will be carried out through the optimization of the elements that make up the National Electric System as a whole, and

The Third Transitory Article of the SENER Agreement, for its part, establishes:

Third.- In accordance with this policy of Reliability, Safety, Continuity and Quality in the National Electric System, the Energy Regulatory Commission and the National Center for Energy Control, within the scope of their powers and competences, shall carry out the corresponding adjustments to the Market Rules and the “General Administrative Provisions that contain the Criteria of efficiency, Quality, Continuity, security and sustainability in the National Electric System; Network Code, as provided in article 12, section XXXVII of the Electricity Industry Law ”and those that may be necessary in terms of efficiency, quality, reliability, safety and sustainability in the National Electric System.

As long as the adaptations indicated in the previous paragraph for the application of the Reliability, Safety, Continuity and Quality Policy in the National Electric System are not carried out, those in force before the entry into force of this Agreement will apply, as long as it is not oppose the provisions of this Policy, being in charge of the Ministry of Energy to resolve any questions regarding the applicable provision that arises in the event of conflict. “

For its part, Chapter V of General Provisions of the SENER Agreement, in item 2. Scope, point 2.2., establishes the following:

“2.2 The Bases of the Electricity Market and General Administrative Provisions (DACG) and other regulations issued by CRE; the Market Operational Provisions that govern the MEM issued by CENACE; as well as the regulation for the incorporation of the Distributed Generation to the SEN and the other operations carried out by the Carriers or Distributors; that are related to activities derived from this Policy, must comply with the principles, guidelines and provisions of this instrument. ”

Chapter VI of Dimensions of the Policy of Reliability, Safety, Continuity and Quality in the National Electric System, in item 6 of Sufficiency, point 6.2 Primary Regulation, point 6.2.3, indicates:

6.2.3. All the Power Plant units connected and delivering active power to the SEN must operate participating in the Primary Regulation (in free mode). The Power Plant units, participating in the primary Regulation, must adjust their production following the changes in the frequency of the System and in the action times established by CENACE. For those Wind, Photovoltaic and Efficient Cogeneration Power Plants with a date of entry into operation, that have an Interconnection contract without being in operation and with a study of Installations delivered prior to the publication of the Network Code of April 08, 2016 in the DOF, they will apply after 18 months of publication of this Policy. ”

In the same Chapter VI., Item 7 of Dispatch Security, point 7.1.2, the SENER Agreement indicates that CENACE will determine the necessary actions to maintain Dispatch Security in compliance with the objectives of Security, Quality and Continuity of the Policy and the provisions that the CRE issues in the matter, pointing out some of them to that effect.

On the other hand, point 8 of the SENER Agreement, related to New Related Services, establishes new services linked to the operation of the SEN, such as the Coverage of the Variability of Power Plants with Intermittent Clean Energy, photovoltaic and wind power and Load Centers Specials. Likewise, it indicates that CRE will issue the regulation and rates applicable to Related Services.

Point 10 of the SENER Agreement, regarding the Incorporation of Intermittent Clean Energies, states:

“10.1 The integration of Installed Capacity of Power Plants with Intermittent Clean Energy in the SEN will be maintained for all Power Plants that have reached the Interconnection Contract one day before the publication of this Policy in the DOF. If for any Power Plant with Intermittent Clean Energy, wind or photovoltaic, it is canceled if the Interconnection Contract or Generation Permit, CENACE will evaluate the requests so that, depending on the position of entry and advancement in its platform called “SIASIC”, from the Interconnection point of the Request and the capacity of intermittent Clean Generation regional accommodation considering the Reliability of the System, the viability of accepting the Study request and continuing the process of it will be determined.

10.8 Regarding the Market in the Balance of Power, the Power Plants with intermittent Clean Energy sources do not provide a firm amount of Power, therefore, they do not contribute to the Reliability of the Electric System.”

In Chapter VII, Final Provisions of the SENER Agreement, point 13.1, establishes the following:

“13. The interpretation that CENACE and CRE make, within the scope of their powers and competences, must be carried out in accordance with the present Policy of Reliability, Safety, Continuity and Quality in the National Electric System, so that, in the event of conflict due to the Market Rules and this Policy, must be interpreted in accordance with the latter.”

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Publication of the Provisions to allow Telecommunications Service Providers access to facilities and rights of way of the National Electric System

On October 29, 2018, the General Administrative Provisions were published in the Mexican Official Gazette to allow Telecommunications Industry Service Providers access to facilities and rights of way of the National Electric System (“Provisions”).

The objective of these Provisions is for Telecommunications Service Providers (“PST”) to have access to more than 11 million Federal Electricity Commission (“CFE”) poles and National Electric System (“SEN”) rights-of-way, which will stimulate competition, modernize and encourage the use of new technologies.

This will be possible because the CFE has a supporting infrastructure in urban and rural areas of the country, which are able to reach 98% of the population. As a result, the coverage of telecommunications services will be extended through the CFE’s electricity distribution network (“Network”).

The area of opportunity of these Provisions is to improve infrastructure sharing practices, since it reduces development costs and leads to a better price for end consumers.

In order to grant access to the facilities and rights of way of the SEN, the Access Providers (“Provider”) shall process the requests through the order of priority with which they were received through the Electronic Management System (“SEG”), an electronic platform developed by each Provider in which it will receive, process, register and respond to the requests for access to the facilities and rights of way of the SEN. In the event that there is insufficient access capacity for applicants, the Provider shall give alternatives such as building additional infrastructure or conducting an auction-type award mechanism. Therefore, these new provisions allow PSTs to enter into a contract directly with Providers and the current procedure based on the un-objective and functional guidelines developed by the CFE is eliminated. This means that the requirements, rights and obligations are clearer and provide greater legal certainty for PSTs.

The PST that have a contract in force at the entry into force of these Provisions and have infrastructure installed in the Network, shall cover an annual economic remuneration to the Provider of $100.84 MX per post, as long as the infrastructure used for the provision of the service exceeds the weight limit established corresponding to 250 kg/km. In addition, they may retain the additional weight for a period of up to 10 years.

As for the calculation of the fair remuneration for the deployment of infrastructure and equipment according to the Provisions for the PST, this will be $6.544 MX per kilogram. These calculations are based on mathematical formulas, also, it will be necessary to pay the cost of the access study, which will be $100.02 MX per post for each PST and is charged for one time. This encourages companies to adopt lighter technologies, because the lighter the infrastructure, the less they pay.

As established in the Fifth Agreement of the Provisions, they will enter into force on January 1, 2019.

Source consulted: Energy Regulatory Commission

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Approval of the General Administrative Provisions to allow telecommunications industry service providers access to facilities and rights of way of the National Electric System.

The plenary of the Energy Regulatory Commission (Comisión Reguladora de Energía – CRE) approved the General Administrative Provisions to allow telecommunications industry service providers access to facilities and rights of way of the National Electric System (the “Provisions”).

Through the approval of the Provisions, the CRE seeks to promote fair and transparent competition, allowing the Telecommunications Services Providers (“TSP”) access to  more than 11 million poles of the Federal Electricity Commission (“CFE”), which in principle will result in an increase in the coverage of telecommunications services.

Different to the access conditions that currently operate according to the guidelines issued by the CFE, in which the only considered criteria is the number of cables that can be deployed. With the new Provisions, the access to the CFE poles is based on objective criteria based on the weight and space that will take up the infrastructure installed by the TSPs on both sides of the pole, which will allow the installation of a greater number of cables.

Likewise, the contributions to be paid now by PSTs for the use of the poles will be based on the weight of the infrastructure installed in them.

According to the Provisions, the CFE’s distribution department shall create an electronic system to deal with requests for access to poles in an agile and expeditious manner, through clear procedures and defined timeframes, which shall facilitate the procedures for TSPs and provide them with certainty in their requests.

The Provisions seek to ensure better use of infrastructure, so provisions were included to prohibit practices that limit the ability to access poles. The Provisions shall enter into force on 1 January 2019.

Source Energy Regulatory Commission

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