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Mexico - June 2020

Electricity market regulation changes spark confrontation

Mexico’s state-owned electricity company, Comisión Federal de Electricidad (CFE), on 10 June, published a new set of fees for transporting and distributing the electricity produced by renewable energy generators. The fees increased by between 400% and 800% depending on voltage, which according to the CFE is necessary to reduce its own losses by eliminating the benefits that these producers secured in their original supply contracts. This is just the latest in a series of recent shocks that have affected private renewable electricity generation firms in Mexico, sparking a confrontation between the government led by President Andrés Manuel López Obrador and the private sector, which accuses the government of undermining legal certainty and investor confidence with its actions.

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