Mexico energy regulator sets stricter inspections

Mexico's energy regulatory commission (CRE) has tightened inspection requirements for permit holders along the full hydrocarbon value chain, including for retail fuel stations.

The updated guidelines, applicable since 10 May, modify criteria developed by the CRE in 2016 for its annual inspection program. More infractions were added to a list that can trigger initial inspections or require companies to go under more intense monitoring.

"The company that fails to comply with obligations will be visited more frequently," Mexican fuel retailers' association (Onexpo) former president Roberto Diaz de Leon told Argus. The regulation also "leaves the door open for the CRE to consider other criteria not specified there and this is another signal to retail fuel stations about the importance of complying with regulatory obligations."

The guidelines apply to the production and distribution of refined products, LPG, natural gas and crude by state-owned Pemex and private-sector companies.

The requirements maintain categories of compliance levels for companies from A to D, along with a specific numerical score. But it further detailed requirements needed to meet the top ranking of D, as well as which missed obligations could degrade a company's ranking. Requirements range from filing daily and weekly statistical reports to maintaining product quality, avoiding emergencies and paying fees.

Companies in the A category with a score of 10 to 7.6, will receive more frequent routine inspections. A score of 7.5 to 5.1, or compliance level B, will require the company to provide more information.

Scores of 5.0 to 2.6, or level C, will result in monitoring, and companies with an ideal score of 2.5 to 0, or level D, will continue with routine inspections and follow-up on its obligations.

An extraordinary inspection can occur under any ranking if there is a legal request from federal, state or municipal entities or even based on citizen complaints or media reports, according to the CRE.

Inspections are conducted by the CRE jointly with Mexico's consumer watchdog (Profeco), the energy and environmental safety agency (Asea) and the national guard or the navy.

By Antonio Gozain