Conditions placed on Mexican Government’s acquisition of Iberdrola power plants

• 2 months ago (2024-02-16)
• David Flin

Gas 372 North America 998 Policy 8

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Mexico’s anti-trust agency the Federal Economic Competition Commission (Cofece) has established conditions for the $6 billion acquisition of 13 power plants by the Mexican Government from Iberdrola .

Cofece has stated that the acquisition will depend on commitments to ensure fair competition in the electricity market and the independent operation of the plants in the market, preventing the exchange of sensitive information among competitors. In addition, an independent administrator will be appointed to make decisions on the operation of the power plants, and controls and mechanisms will be established to avoid conflicts of interest.

The National Infrastructure Fund, which will contribute part of the money for the purchase, will have its investment limited to 51 per cent to guarantee equitable participation.