Proposed Implementing Legislation for the Mexican Energy Reform Will Create an Open, Competitive Electrical Power Industry

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 (the “Energy Reform”), 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 thirteen existing laws, covering both the oil and gas industry and the electrical power sector in Mexico.

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