Mexico
Press Release

The CFE's rescue plan includes an initial investment of 24 billion pesos

Bnamericas Published: Monday, February 25, 2019

As part of the rescue plan of the Federal Electricity Commission (CFE), the General Director Manuel Bartlett Díaz announced that in the first stage 24 billion pesos will be invested in the maintenance of its power plants, to reactivate power generation electrical

Additionally, the CFE will request through the Pidiregas investment scheme 10 billion pesos, in order to compete on equal terms with private companies in the current electricity market.

Accompanied by Miguel Santiago Reyes Hernández, General Director of CFEnergía and CFE Internacional; José Antonio Rojas Nieto, Corporate Finance Director, and Luis Bravo Navarro, Corporate Communication Coordinator, indicated that during the first three years there will be no legal or constitutional reform of the Energy Reform.

In addition, they also have to clean up the finances, since they currently have a debt of 60 billion dollars for five factors such as: documented debt, 19 MMDP; Labor Liability, 19 MMDD; External Energy Producers, 7 MMDD; Public Financed Work (OPF), 7 MMDP and 16 MMDD in detained pipelines

Regarding the seven gas pipelines detained for various social problems, by the private companies TransCanada, Fermaca, IEnova and Carso Energy, and crossing 15 states of the country, Miguel Reyes Hernández, CFE Energía General Director and CFE Internacional, explained that only in 2018 they were paid 5 thousand 800 million pesos.

" These are the seven pipelines, approximately encompassing 50 percent in terms of kilometers of the network that the CFE tendered of just over 6,600 kilometers in Mexico and 950 kilometers in the United States, " Reyes Hernández said.

The gas pipelines stopped are:

Project's name Economic group Location
Tuxpan - Tula Transportadora de Gas Natural de la Huasteca, S de RL de CV (TransCanada) Veracruz, Puebla, Hidalgo and State of Mexico
Tula - Villa de Reyes Transportadora de Gas Natural de la Huasteca, S de RL de CV (TransCanada) Hidalgo, State of Mexico, Querétaro, Guanajuato and San Luis Potosí.
Samalayuca - Sásabe Carso Gasoducto Norte, SA de CV (Carso) Sonora and Chihuahua
Guaymas - The Gold Pipeline of Aguaprieta, S. de RL de CV (IEnova) Sonora and Sinaloa
La Laguna - Aguascalientes Fermaca Pipeline La Laguna SRL de CV (Fermaca) Durango, Zacatecas and Aguascalientes
Villa de Reyes - Aguascalientes - Guadalajara Fermaca Pipeline de Occidente SRL de CV (Fermaca) San Luis Potosí, Aguascalientes and Jalisco
South Texas - Tuxpan Infrastructure Marina del Golfo SRL de CV (TransCanada-IENova) Tampico and Veracruz

The General Director of the CFE specified that electricity tariffs are determined by the Energy Regulatory Commission (CRE); nevertheless, the CFE will promote that they do not rise above inflation for the benefit of their more than 43 million users.

"There will be no blackouts, although the Commissioner President of the CRE says that if there is no more private investment there will be blackouts, it is a fallacy, it is electrical terrorism," clarified Bartlett Diaz.

He indicated that the subsidy granted by the federal government to low-energy electricity tariffs will be maintained; However, the subsidy granted to companies will have to be reviewed.

The CFE's position on the cancellations of the 4th Long Term Auction, the SIN-BCS Interconnection Transmission Line and the Open Contest of the "303 LT in Direct Current Ixtepec Power - Yautepec Power" project, was done because it is contrary to the interests of the company, with long-term agreements that generate losses and force the company to continue buying electricity.

"We are going through a very complicated time in relation to the debts, we have a request for debt reviews every day", despite this, the CFE General Director assured that the necessary measures are being taken to rescue the company. and give back his social vocation.

This CFE release was published using an automatic translation system.

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