Mexican energy regulator freezes key operations due to pandemic

[MEXICO CITY] A key Mexican energy market regulator announced a suspension of its activities on Monday, citing health risks associated with the coronavirus pandemic as the country continues to grapple with rising caseloads and deaths.

Known locally as the CRE, the regulator oversees retail fuel stations, transport and storage of natural gas and other petroleum products, as well as issues related to electricity generation.

The CRE said the suspension of pending deadlines and other legally scheduled actions, which include the issuing of a wide range of permits to regulated companies, will take effect immediately.

It will continue until federal or local health authorities in the Mexican capital "determine that no epidemiological risk" remains, according to an announcement in the federal gazette.

Companies with pending or future approvals before the commission during the suspension period will not be penalised, the announcement noted.

Separately, exceptions will be made to the suspension for some "extremely urgent" matters, or for others deemed necessary for the continuity of operations, it said. It did not give details of these functions.

The suspension comes as officials, including President Andres Manuel Lopez Obrador, have suggested regulators like the CRE could be folded into the energy ministry to cut costs and avoid duplication.

Some critics, however, argue the government's real aim is to consolidate power over the regulated areas in its own hands.

REUTERS