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 reduce the role of the State in the power sector, foster private participation to provide capital, technology and expertise, recast CFE, currently Mexico’s national power company, as an autonomous “State Productive Enterprise,” establish an independent system operator, and revise the regulatory framework, with a reorganized 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.

Mexico has adopted amendments to the Mexican Constitution, effective December 20, 2013, that will profoundly change all aspects of the electric power sector in Mexico. This set of amendments provides a framework to…