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…

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