According to the regulator, Iberdrola sold electricity to other companies, while by law the company must reserve the production and commercialization of its electricity to customers with a contract.
The fine comes at a time when there are great tensions within the electricity production sector. The Mexican parliament had rejected a bill in April that would increase the state’s influence in electricity production.
The intent of the government under Mexican President Andres Manuel Lopez Obrador was to reverse the 2013 liberalization of the electricity sector and increase the role of the Federal Electricity Commission (CFE), a government body, to the detriment of the public sector and foreign businesses.
The left-wing government has been heavily criticized by the US government for those plans.