Pillsbury Winthrop Shaw Pittman

Proposed implementing legislation for the Mexican energy reform will create an open, competitive electrical power industry

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

The Mexican Congress is debating a historic package of legislation to restructure the nation’s electrical power sector. This legislation will create a more open and competitive power industry in Mexico, giving the private sector unprecedented opportunities to (i) generate power in Mexico for sale in a competitive wholesale electricity market, (ii) offer electricity service to large-scale consumers in Mexico and (iii) enter into joint ventures, public-private partnerships and service contracts with the state or the state-owned utility for the financing, construction and operation of infrastructure needed for the transmission, distribution and generation of electrical power.

Four months after Mexico amended its Constitution to reform and restructure the nation’s energy industry, president Enrique Peña Nieto submitted to the Mexican Congress a much anticipated package of proposed legislation to implement the Constitutional amendments. The proposal includes eight new laws, as well as amendments to 13 existing laws, covering both the oil and gas industry and the electrical power sector in Mexico.

The proposed implementing legislation for the energy reform will be voted on by legislators in the coming weeks, with the goal of passing the energy reform laws before their mid-year recess. President Peña Nieto has indicated that he expects the proposed implementing legislation to be adopted into law by mid-July of this year…

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