Mexican government and iberdrola agreed to sell 13 power plants in the country to be operated by the Federal Electricity Commission (FEC).CFE), in a $6 billion operation that the President Andres Manuel Lopez Obrador called “new nationalization”.
The federal president spoke about the transactions in a video posted on social media, in which he was accompanied by finance minister Rogelio Ramirez de la O and executives from a Spanish company in Mexico.
Ramirez de la O said that the operation will be completed in five months but did not provide details on how the purchase would be financed.
Iberdrola previously announced that signed a memorandum of understanding with Mexico Infrastructure Partners (MIP) to sell 8,539 megawatts (MW) of installed combined cycle capacity and 103 MW of wind power in the Latin American country for $6,000 million.
He added that 87% of the installed capacity in the agreement runs in Mexico under an Independent Energy Producer (PIE) number. the scheme by which companies sell their energy CFE.
The details of the agreement and how the operation of the installed capacity would pass into the hands of the CFE Treaty were not immediately clear.
“This means saving the Federal Electricity Commission and this is a new nationalization of the electrical industry“, the president said.
López Obrador also mentioned that Spain’s Iberdrola took over the electricity market during Felipe Calderón’s time. And this is how it was with Enrique Peña Nieto: “First of all, when it comes to deliveries to wholesalers, they take over. I can tell you that CFE has no clients in Nuevo León’s business sector. The Federal Electricity Commission is no longer there.”
The Energy Regulatory Commission (CRE) fined Iberdrola 9,145 million pesos. for violating permission to produce electricity independently by selling it to his partners. However, a federal judge granted the final decision to suspend the financial penalty.
(According to information from Reuters And White elephant)
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
