Informative Bulletin: Electricity rate increases

Informative bulletin regarding electricity rate increases and the legal actions that can be exercised against its collection.




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Dear clients and friends,

Below please find our newsletter regarding the increase of electric supply rates, prepared by our Administrative Litigation practice group at Zozayacorrea Sahagun Arizaga - Abogados y Fiscalistas.

Derived from the Energy Reform of December 20, 2013, the Articles 138 and 144 of the Electricity Industry Law established that the Regulatory Energy Commission ("CRE") would issue methodologies through administrative provisions of general nature to determine (i) calculations and adjustments of the rates for the services of transmission, distribution, operation of suppliers of basic services and related services not included on the electricity market, as well as the rates of the basic energy supply; and (ii) calculation and adjustment of the recoverable income of basic energy supply and the objectives for efficient collection for the suppliers of basic services.

Therefore, by means of agreement number A/032/2018 dated September 13, 2018, the CRE amended Exhibit B of a previous provision, so that as of September 2018, there will be increases in Federal Electricity Commission ("CFE") rates for electricity consumption during the remaining months of the year, which puts at risk the financial viability of employers and their businesses.

The aforesaid is very important, as the CRE Agreement of last September translates into a disproportionate increase in the amount to be paid to the CFE for the supply of electrical energy, detrimental to the user, in some cases close to double, without having a significant variation in kilowatt consumption.

However, it is possible to deem that the aforementioned provision is unconstitutional, since, among other things, it failed to comply with formal requirements for its due application to the citizen, which opens the possibility of filing an indirect Amparo (habeas corpus) as means of judicial defense against it.

In our extensive legal experience, the referred provisions violate to the detriment of the citizen, various fundamental rights provided in the Political Constitution of Mexico and in International Treaties, so the appropriate means of defense to challenge the unconstitutionality of the provisions in question, as well as certain articles of the Electricity Industry Law, is the indirect amparo trial.

The admission of this Constitutional Guarantees Trial necessarily requires a specific act of application, because as a result of that an affectation is caused. Having said this, there is a period of 15 (fifteen) business days for the filing of the indirect amparo, computed from the date the company paid the receipts issued by the CFE for the month of October 2018.


It is important to point out that those who made the payment to the CFE after the second half of October may still have an opportunity to oppose the legal recourse in time; nevertheless, it is imminent to carry out the computation of the elapsed days as soon as possible.

Our services would include the immediate submission of the amparo claim and its follow-up until its ruling, with the purpose of forcing the CFE to adjust its rates, justify them or eliminate them.

Finally, if the precautionary measure of suspension is granted, the citizen might be exempted from paying the proportion referred in the adjustment of the new electricity consumption rates, untiltheamparo is finally resolved.


If the above results of your interest, please contact the undersigned on the following email address in order to obtain more information:
jose.zozayacorrea@zozayacorrea.com

Or one of the members of Zozayacorrea Abogados y Fiscalistas on the email address:
 charlene.gomez@zozayacorrea.com

Or, should you are located at the northern states, please contact Ali Kuri at ali.kuri@zozayacorrea.com

Thanks and best regards,

José Miguel Zozayacorrea
Socio | Partner- Zozayacorrea Sahagún Arizaga - Abogados y Fiscalistas

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Puerta de Hierro, 45116, Zapopan, Jalisco, México.

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