Pillsbury Winthrop Shaw Pittman

Mexico adopts major energy reforms restructuring its electric power sector

By John B McNeece III, Eric Save and Michael S Hindus

Mexico has recently adopted amendments to the Mexican Constitution that will profoundly change all aspects of the electric power sector in Mexico. Among other things, those amendments: (1) reduce the role of the state in the power sector; (2) foster private participation to provide capital, technology and expertise; (3) recast CFE, currently Mexico’s national power company, as an autonomous ‘State Productive Enterprise’; (4) establish an independent system operator; and (5) revise the regulatory framework, with a re-organised Energy Regulatory Commission as a key regulator.

The terms of the implementing legislation for the constitutional amendments — yet to be presented to the Mexican Congress — will be critical in determining how the private sector will be able to participate in the reform of the power sector…

Click on the link below to read the rest of the Pillsbury briefing.

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