Network Code

What is the Network Code?

The Network Code is a set of technical, administrative and legal requirements for the connection or interconnection to the National Electro-Energy System (SEN), with the aim of encouraging the SEN to be developed, maintained, operated, expanded and modernized in a coordinated manner based on technical-operational requirements, and in the most efficient and economic way.

These are the minimum conditions that any market participant must meet. In the case of users, the criteria contained in the Network Code are based on the following premise: The connection of the load centers must not adversely affect the levels of efficiency, quality, reliability, continuity and sustainability of the SEN.

Entry into force of the Network Code

It comes into force on a mandatory basis from April 8, 2019, in accordance with the resolution issued by the Energy Regulatory Commission (CRE), published on April 8, 2016, the Network Code, which is mandatory For the Members of the electrical industry, there is their interpretation and vigilance.

Organizations that regulate the Network Code

CENACE

The National Energy Control Center (CENACE) is a decentralized public body whose purpose is to exercise Operational Control of the National Electric System, the operation of the Wholesale Electricity Market and guarantee impartiality in access to the National Transmission Network and the General Networks of Distribution.

In accordance with the provisions of article 15 of the Electricity Industry Law (LIE). “The State will exercise Operational Control of the National Electric System through CENACE …”

CRE

The Energy Regulatory Commission (CRE) is an agency of the centralized Federal Public Administration, with the character of Coordinated Regulatory Body on Energy Matters, as established in the eighth paragraph of article 28 of the Political Constitution of the United Mexican States.

Therefore, the CRE integrates in these General Administrative Provisions, hereinafter “Network Code”, the minimum technical requirements for the efficient development of the planning, measurement, operational control, physical control and access and use processes of the electrical infrastructure.

Companies that must implement the Network Code on a compulsory basis

The Network Code is mandatory by definition for all companies with a consumption greater than 1 MW and / or that are connected at a voltage greater than 69 KV.

Fines for breach of the Network Code

The fines derived for non-compliance will be sanctioned according to Article 165, below are some general references of what is contained in said article:

Fine from 2% to 10% of gross income received in the previous year

Failure to abide by CENACE’s instructions without justification.

Failure to seriously comply with the provisions on quality, reliability, continuity and security of the National Electric System.

Carry out activities in the electrical industry without the corresponding permit or registration.

Apply technical specifications different from those issued by the competent authorities.

A fine of fifty thousand to two hundred thousand minimum wages

Failing to provide the information required by the authorities.

Failure to comply with the provisions regarding quality, reliability, continuity and security of the National Electric System.

Sell ​​or buy electric energy, without being subject to the provisions of this Law

Stop observing the administrative provisions issued by the Secretariat or the CRE.

Prevent access to meter inspectors.

Fine of ten thousand to fifty thousand minimum wages

Consume electrical energy through installations that alter the operation of the measuring instruments.

A fine of six to fifty minimum wages for each Megawatt of non-compliance

Breach of Electric Power Contracts

Failure to acquire clean energy certificates.

Fine up to one hundred minimum wages per megawatt-hour of consumption in the previous twelve months

For not complying with the requirements of registration of Certified User

Fine up to three times the amount of electricity consumed, from the date the offense was committed

Whoever connects their Private Networks with the National Electric System without authorization.

To the End User who consumes electrical energy through installations that alter normal operation or without a contract.

A repeat offender will be subject to a penalty equivalent to twice the one that was applied the first time.

To the offender who incurred in default, a sanction equivalent to three times the one that would have been applied the first time will be applied, in addition to the temporary or definitive suspension of the service.

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