López Obrador defends his legal battle against Spanish energy companies 

The Mexican president said that Iberdrola bought or built the most significant number of plants that generate electricity in Mexico and was supported by the media

MEXICO CITY (Agencies) – Intending to defend its energy policies and the “interests of the nation”, Mexico’s President, Andrés Manuel López Obrador, mentioned this Friday in the National Palace that he will litigate against Spanish companies OHL, Repsol and Iberdrola since he assures that they are a monopoly in the country.

“We are going to litigate. We are going to defend the public finances. We are going to defend the interests of the nation.” AMLO stated.

Regarding Iberdrola, which has been operating in Mexico for over 20 years, the president said that “they bought or built the largest number of plants that generate electricity in the nation. We were attacked by the newspaper El País because we defend the country of this type of company. After all, they are Spanish”.

According to the Federal Electricity Commission (CFE), this company has a 15% market share in Mexico, so López Obrador is convinced that they want to ruin the state-owned company.

“We are not going to expropriate. We are not going to do what that good President Adolfo López Mateos did in 1960, who nationalized the electricity industry, no. But we are going to review the contracts”.

AMLO also criticized the collaborations that Georgina Kessel, former Secretary of Energy during the six-year term of Felipe Calderón (2006-2012), had with Iberdrola.

“I am going to explain how this company, Iberdrola, has as an official a former Secretary of Energy and, I do not know if she is still there, a former President of the Republic as a director of her company. A shameful thing”.

These statements by the Mexican president come one day after a federal judge suspended the new policy of the Energy Secretariat (SENER) that limits the private generation of renewable energy.

The definitive suspension is the first granted against the policy that Sener published on May 15 in the Official Journal of the Federation (DOF) and an additional one against the agreement of the National Energy Control Center (Cenace) on April 29.

This appeal puts the brakes on both policies as the final ruling on the constitutionality of the agreements arrives, which blocked the interconnection of new renewable generators on the grounds of guaranteeing the “reliability” of the National Electricity System (SEN) during the pandemic.

The Business Coordinating Council (CCE) denounced on Thursday through a statement an “illegal” and “unacceptable” increase of between 500% and 900% in charges for the electricity transmission service that must be paid by the power plants, which was promoted by the Federal Government.

According to the CCE, the “electrolinazo” damages the relationship between the private initiative and the federal government. It will result in a higher cost in the lives of citizens.

The authorities have once again ignored the evidence of the impacts and repercussions that will be felt on the national economy in general and on consumers in particular. They have also violated the Electricity Industry Act and international treaties

The businessmen argued that before the increase in rates, public consultation and cost-benefit analysis should have been carried out, as required by the Federal Law on Regulatory Improvement.