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06 May 2019
The 2013 energy reform opened up the electric industry by allowing private companies to undertake power generation and trading activities. However, transmission and distribution and basic supply activities are still reserved for the state through the Federal Electricity Commission (CFE).
Accordingly, the Electric Industry Law sets out a general unbundling principle which is applicable to all industry players. Under this principle, power generation, transmission and distribution and the trading and supply of primary consumables (eg, natural gas) must be performed through different legal entities, which have been restricted with regard to the sharing of specific information (ie, strict legal separation).
The reform ordered the legal separation of CFE in order to guarantee equal competition for all industry players. Accordingly, on 11 January 2016 the Ministry of Energy (SENER) issued the CFE separation rules to foster open access, efficient operation and competition within the industry.
The implementation of the CFE separation rules resulted in several inefficiencies within CFE generation companies, such as increased costs and complex administrative processes. In order to overcome these issues, SENER recently published the following amendments, which have relaxed the rules in order to maximise CFE resources and reduce power prices for end users.
The key amendments to the rules are as follows:
The above changes will allow the CFE to:
For further information on this topic please contact Carlos Ramos Miranda or Perla Gizeh Díaz Taracena at Hogan Lovells BSTL SC by telephone (+52 55 5091 0172) or email (firstname.lastname@example.org or email@example.com). The Hogan Lovells BSTL SC website can be accessed at www.hoganlovells.com.
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