Horacio M. de Uriarte
Partner since 2005
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Mail: hdeuriarte@macf.com.mx
COFECE issues opinion on the bill to amend the Mexican Constitution on energy matters.
Professional related: Horacio M. de Uriarte | March 18th, 2022
On March 3, 2022, the Federal Economic Competition Commission (“COFECE”) issued an opinion (the “Opinion”) on the “Bill to amend Articles 25, 27 and 28 of the Mexican Constitution, in energy matters” (the “Bill”)[1] that was introduced by President López Obrador to the House of Representatives, regarding certain provisions that seek to suppress economic competition in the energy sector.
[1] The client alert prepared by our Firm on the Bill is available here
By way of introduction, the Opinion references the following actions that have been sought by the Federal Government to hinder competition in the electricity sector: (i) the cancellation of Long Term Auctions; (ii) the amendment by the Energy Regulatory Commission (“CRE”) of the Terms for the strict legal separation of the Federal Electricity Commission (“CFE”); (iii) the publication by the National Energy Control Center (“CENACE”) of the Resolution to guarantee the efficiency, Quality, Reliability, Continuity and security of the National Electric System, due to COVID-19; (iv) the publication by the Ministry of Energy (“SENER”) of the Reliability Policy; (v) the update of the charges for the electricity transmission service paid by self-supply and cogeneration permit holders by CRE; and (vi) the amendment to the Electric Industry Law by the Mexican Congress.
Regarding the amendments proposed in the Bill, first, the Opinion focuses on pointing out the consequences of including electricity generation and supply as State-exclusive areas, as well as limiting the private sector’s participation in electricity generation to 46%.
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